The proposed acquisition of Dimension Data by Nippon Telegraph and Telephone Corp (NTT) is more about the Japanese telecommunications group than about the SA-based IT firm.
That’s the view of consulting company Frost & Sullivan, which says NTT has embarked on a “fairly aggressive acquisition drive over the past two or three years”.
“This move fits in with that growth strategy,” says Frost & Sullivan communications technology analyst Protea Hirschel.
“NTT recently acquired Integralis, a managed services company with a strong focus on security,” she says. “It also took a 30% stake in a Bangladeshi mobile operator, and is engaged in a 25% joint venture with Tata Telecoms in India, which has seen phenomenal growth.”
Hirschel says the Didata deal is “one in a line of deals, though it is a particularly big one”.
She says there are strong synergies between the two companies. “It will be good for both companies.”
However, she says it will be disappointing if the deal results in the delisting of Didata from the JSE. The group has a primary listing in London and a secondary listing in Johannesburg.
“Didata has been a homegrown international success story and the share price has shown positive growth over the last year,” Herschel says. — Staff reporter, TechCentral