Dimension Data managers are said to seek investor support for buyout - TechCentral

Dimension Data managers are said to seek investor support for buyout

Dimension Data senior managers are approaching lenders and investors to raise cash for a possible deal for the group’s Africa and Middle East (MEA) operations, which could be valued at about US$800-million (R11.5-billion).

That’s according to people familiar with the matter, who asked not to be identified because the deliberations are confidential.

Senior managers at Dimension Data are considering a buyout of some of the South African IT services company’s operations from its owner, Nippon Telegraph & Telephone, the people said.

A transaction could lead to a re-listing of Dimension Data, the people said. If the approach is successful, Dimension Data’s management would also take control of Internet Solutions, they said. The plans were first reported by TechCentral.

Representatives for NTT and Dimension Data declined to comment.

NTT is merging its various international technology businesses, including Dimension Data, under a new holding company to better serve global clients. This may encourage the former Japanese phone monopoly to agree to sell the MEA operations, said the people.

NTT bought the then London- and Johannesburg-listed Dimension Data for £2.1-billion in 2010 as part of a breakneck global acquisition spree that also included an expansion into the US. Dimension Data focuses on IT consulting and technical and support services.  — (c) 2019 Bloomberg LP

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