DURBAN - Technology firm Datatec has arranged new banking facilities of $155 million (R2.31 billion) for its subsidiary, Logicalis Group, as it seeks fresh acquisitions.
Datatec said yesterday that the facility covered Logicalis’ operations throughout the world, excluding Latin America.
“It will be used to fund working capital requirements and also includes a new acquisition credit line,” Datatec said. The group said the new facility would expire on January 30, 2023, with an option to extend for a further year.
It said the facility was subject to covenants and would bear an interest at a rate of between 1.75 percent to
3 percent above the US dollar, euro or British pound base rate, which would differ periodically depending on applicable leverage.
The group said the facilities were jointly agreed on with a consortium of banks which include BBVA, Barclays Bank, HSBC UK Bank, HSBC Bank USA and Siemens Bank. Datatec intends to to develop and grow Logicalis internationally through organic and acquisition activities.
Last year Logicalis acquired a
70 percent stake in Cilnet, a Cisco systems integrator and managed services business in Portugal. Logicalis also has acquired Orange Networks, a Microsoft services business in Germany.
In South Africa, Logicalis acquired Mars Technologies, an IT services business, as part of an ongoing strategy to augment its existing solutions and services business in South Africa.
Logicalis, one of the three divisions of Datatec, has a global footprint with operations in Europe, North America, Latin America, Asia Pacific and Africa.
In Datatec’s last set of results for the six months to end August, Logicalis reported a rise in earnings before interest, tax, depreciation and amortisation (Ebitda) of $56m during the period, up from $38.7m compared to a year earlier while operating profit increased to $31.8m.
Datatec’s JSE shares closed
0.87 percent lower yesterday at R33.21.