JSE-listed multinational IT group Datatec has acquired Asia-Pacific-based network integration company NetStar Group in a deal worth US$19,8m. The buy will give the company exposure to Australia, Taiwan, Malaysia, Singapore and China.
NetStar will become part of Logicalis, Datatec’s infrastructure solutions and services business.
Datatec says NetStar is “one of the most established independent providers of network integration and managed services across the Asia-Pacific region”.
NetStar has customers in government, telecommunications, hospitality and financial services.
The transaction gives Logicalis a “pan Asia-Pacific platform to develop its business through further acquisitions in the region and to roll out new services in some of the world’s most dynamic markets and economies”. It also gives the company access to the fast-growing Chinese market.
The acquisition will allow Logicalis to “grow organically and by acquisition across the regions”, says Datatec CEO Jens Monatanana (pictured).
NetStar has forecast revenue of $70m and earnings before interest, tax, depreciation and amortisation of $6,5m for the financial year to end-June 2010. The business has cash generative and has stable operating profit margins, Datatec says.
The deal will be settled through the issue of new Datatec shares. This will require approval by Datatec shareholders – a shareholders’ meeting has been called for 23 December.
Datatec’s share price was trading down 1% at R26 in mid-afternoon trade on Tuesday. — Staff reporter, TechCentral
