South African-headquartered global technology services group Dimension Data is acquiring “certain subsidiaries” of European multinational communications technology group NextiraOne for an undisclosed sum.
The deal is being done in two parts. The first part of the transaction involves Dimension Data snapping up NextiraOne’s businesses and its 1 850 permanent employees in the UK, Germany, Austria, Belgium, the Czech Republic, Ireland, Hungary, the Netherlands, Poland, Spain, Slovakia, Hungary and Luxembourg.
The South African group, which was bought by Japan’s Nippon Telegraph and Telephone (NTT) Corp in 2010 for R24,4bn, has also agreed to buy NextiraOne’s operations in France and Italy in mid-2015, provided they meet “certain performance conditions”.
NextiraOne has 43 000 private and public sector clients in Europe. The company, which is owned by management and private investors, was created in 2002 through the acquisition of Alcatel’s multi-vendor enterprise service and distribution business.
The acquisition will assist Dimension Data in reaching its stated target of doubling its revenue by 2018 from US$6bn to $12bn. It will do this through organic growth and acquisitions, says CEO Brett Dawson.
The deal will give Dimension Data the opportunity to expand into the “middle market”, Dawson says.
“Dimension Data’s future strategy is to take the combined portfolios of both companies to the small and medium business, commercial, public sector, and enterprise markets.”
He says NextiraOne’s unified communications and collaboration business also provides the group with the ability to manage communications infrastructure across multiple platforms.
“With NextiraOne now part of Dimension Data, our vision is to become Europe’s leading IT solutions and services provider.”
The deal means the group will increase its footprint in Europe from 10 to 16 countries – the new ones being Hungary, Poland, Slovakia, Austria, Portugal and Ireland.
NextiraOne will be rebranded as Dimension Data over the next three months. Dimension Data Europe CEO Andrew Coulsen will lead the integration of the businesses, while NextiraOne CEO David Winn will lead the remaining NextiraOne France and Italy businesses and, at the same time, act as Dimension Data’s advisor for client and vendor engagements. — (c) 2014 NewsCentral Media