Alviva Holdings has reached an agreement to sell 100% of the Datacentrix Group to Convergence Partners Digital Infrastructure Fund (CPDIF).
Alviva planned to exit Datacentrix following its delisting from the JSE in early 2023, to focus on its core operations in hardware distribution, Convergence Partners said in a statement yesterday. Terms of the transaction were not disclosed,
“The transaction aligns with the CPDIF’s strategy of investing in high-growth companies that are leading champions in their field, with strong management teams and deep customer and vendor relationships,” Convergence said.
It will continue to operate independently as it had in the past, and no changes were envisaged in operations or staff.
According to research, the IT market in South Africa was resilient even during periods of economic downturn, and was forecast to outpace the country’s gross domestic product growth. Convergence Partners directors said they believed Datacentrix was ready to capture this growth.
Datacentrix provides ICT integration services and solutions to blue chip corporates in South Africa. The company’s approach is to partner with its customers, equipping them with insight and assisting them to align their ICT undertakings with their business strategy.
Datacentrix would continue to expand into technologies that delivered business value to its clients, including digital transformation solutions, hybrid solutions from edge to cloud that was informed by the customers data, and workload requirements.
Datacentrix CEO Ahmed Mahomed said he was excited with the development as the entities shared a common value system, culture, vision and approach.
“We are excited about the future as we start a new chapter in Datacentrix’s 25-year history as a highly successful business that is well respected in the market. By joining forces with Convergence Partners, we will harness what has made us successful to date and leverage the wider capabilities of the group including its reach into the rest of Africa,” he said in a statement.
“The Datacentrix team possesses exceptional skills in Managed Services and System Integration (SI). This acquisition marks a significant step for Convergence Partners as we endeavour to work alongside the Datacentrix team in building a leading SI business in South Africa and across the African continent,” said Convergence Partners chairperson Andile Ngcaba.
“The synergy between Datacentrix’s capabilities and Convergence Partners’ extensive experience in private equity, particularly through CPDIF, is poised to deliver unparalleled value to our clients across sub-Saharan Africa, North Africa, and the Middle East,” he said.
The transaction was expected to close in the first quarter of this year, subject to the customary regulatory approvals, including by the Competition Authority of South Africa and the Independent Communications Authority of South Africa (Icasa).
Alviva’s other companies include Pinnacle, Axiz, Tarsus and Datanet. Its delisting last year saw it being acquired by a black-led consortium, including some of its management, along with Tham Investments, Day One Asset Management and an individual, P Ramasamy. Tham and Ramasamy were two major shareholders and empowerment partners of Alviva.