With more than half a dozen SA operators rolling out their own national networks, consolidation in SA’s telecommunications industry looks inevitable. There’s a chance Cell C and Dimension Data could be the ones to kick it off. Didata division Internet Solutions looks a bit like the odd man out these days. The converged service provider, which remains a powerful force in the corporate market, is the only big player in its space that doesn’t have its own significant investment in telecoms infrastructure.
Finance minister Pravin Gordhan and the SA Reserve Bank have both given the green light to the R24,4bn all-cash acquisition of SA IT group Dimension Data by Japan’s Nippon Telegraph and Telephone Corp (NTT). Didata said on Friday that both parties had approved the offer.
Japan’s Nippon Telegraph and Telephone Corp (NTT), which is in the process of acquiring Dimension Data in a R24bn all-cash deal, should be pleased with the SA-based technology group’s latest financial results. In the three months to 30 June 2010, Didata has lifted sales by a robust 22% over the same period in 2009, boosted by a good performance from its systems integration division.
When I arrived at Jeremy Ord’s office last Friday — the day after news that the group he cofounded and now chairs, Dimension Data, was being bought out for R24,4bn by a Japanese corporate giant — he was looking relaxed. Having just flown back from London that morning, Ord appeared a little tired but entirely laid-back in jeans, takkies and an old jumper. The TV in his office, tuned in to the British Open, had the attention of the 54- year-old golfing and cycling enthusiast.
Dimension Data’s telecommunications division Internet Solutions (IS) may make use of some of the innovative technology coming out of Japan’s Nippon Telegraph & Telephone Corp (NTT) as it steps up the roll-out of its own telecommunications network infrastructure. That’s the word from Didata chairman Jeremy Ord, who was speaking to TechCentral a day after the London- and Johannesburg-listed group announced it was being acquired by NTT in an all-cash deal worth R24,4bn.
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”.
The proposed acquisition by Japan’s Nippon Telegraph and Telephone Corp (NTT) of Dimension Data will give the SA-headquartered IT group’s Internet Solutions (IS) division access to one of the world’s largest telecommunications companies. IS MD Derek Wilcocks, reacting to the news of the proposed R24,4bn all-cash deal, says it’s “incredibly positive” for IS as it will make the Didata unit part of one of the “strongest global networks, with data centres around the world”.
Japanese telecommunications group, Nippon Telegraph and Telephone Corp (NTT), is buying SA IT group Dimension Data for £2,1bn (R24,4bn). The offer represents a R5bn premium to Didata’s value on Wednesday, before the offer was announced. Didata has already received commitments to support the deal from more than half its shareholders, including Didata directors, Venfin and Allan Gray.