JSE-listed global technology distribution and services group Datatec, through its Logicalis subsidiary, is acquiring US-based Advanced Technology Integration Group (ATIG) for up to US$42m (about R525m) from a company called MCPc.
The deal, which is still conditional, will bulk up Logicalis’s systems integration and professional services capabilities in the Midwestern US.
“The acquisition will consolidate Logicalis’ presence in the key Midwest region and present significant cross-selling opportunities for its services offering,” Datatec said in a note to shareholders.
ATIG’s offering, Datatec said, is “highly complementary to Logicalis’s”.
“MCPc is selling ATIG to focus on its end-user computing business, an area where Logicalis does not operate,” the group said.
In the year ended 31 December 2014, ATIG had revenues of $133m and the acquisition is expected to be earnings enhancing for Datatec, it added. ATIG employs over 100 people in 14 offices and provides enterprise networking, data centre, unified communications, cloud and managed services solutions to the healthcare, state and local government, and education sectors.
The acquisition is subject to a number of closing conditions and is expected to become effective in September 2015.
“ATIG adds significant scale to Logicalis’s presence in the Midwest and is central to the consolidation of our position in that market,” said Datatec CEO Jens Montanana.
“It also strengthens strategic relationships with key vendor partners Cisco, VMWare and Hewlett-Packard and broadens our services scope into a new customer group.”
Datatec’s share price closed on Tuesday at R65,73/share. The counter has added 15% in the past 12 months. — © 2015 NewsCentral Media