Datatec buys In­done­sian ICT firm

The Star Early Edition - - NEWS - Sandile Mchunu

DATATEC, the international in­for­ma­tion and com­mu­ni­ca­tions tech­nol­ogy (ICT) group, has an­nounced that it has ac­quired a 54-per­cent ma­jor­ity stake in Packet Sys­tems In­done­sia (PSI) for $6.8 mil­lion (R88.74m).

Datatec will ac­quire PSI through its sub­sidiary, Log­i­calis Group, to­gether with its In­done­sian part­ner, Metro­data.

Metro­data will ac­quire a 14-per­cent share­hold­ing in PSI and the re­main­ing 32 per­cent will con­tinue to be held by PSI man­age­ment.

The Log­i­calis ac­qui­si­tion will be funded from Log­i­calis’s ex­ist­ing bank fa­cil­i­ties.

Datatec chief ex­ec­u­tive Jens Mon­tanana said: “This ac­qui­si­tion is strate­gi­cally im­por­tant for Log­i­calis, as it will serve to en­hance its op­er­a­tions be­yond In­done­sia and across the Asia-Pa­cific re­gion. Blend­ing Log­i­calis’s method­ol­ogy and ex­pe­ri­ence with PSI’s scale and cus­tomer reach will bring wider scale and cus­tomer re­la­tion­ships across a num­ber of high­growth re­gional mar­kets.”

The trans­ac­tion is ex­pected to be fi­nalised in the third quar­ter of this year.

PSI is a lead­ing ICT sys­tems in­te­gra­tor and ser­vice com­pany in In­done­sia. As a re­sult of the ac­qui­si­tion, it will be in­te­grated with Log­i­calis Metro­data In­done­sia, which is Log­i­calis’s ex­ist­ing In­done­sian op­er­a­tion.

Peter Takaen­desa, a port­fo­lio man­ager at Mer­gence In­vest­ment Man­agers, said the ac­qui­si­tion was not ma­te­rial at this stage in the con­text of the big­ger Log­i­calis Group.

“How­ever, the trans­ac­tion pro­vides sig­nif­i­cant growth po­ten­tial (over the) longer term given the size of the In­done­sian market, and man­age­ment also ap­pears to be tar­get­ing us­ing the In­done­sian base to ex­pand into other Asian mar­kets.

“Log­i­calis has ex­panded its ge­o­graphic pres­ence sig­nif­i­cantly over the past decade and is now one of the most ge­o­graph­i­cally di­ver­si­fied global IT ser­vices com­pa­nies. Op­er­at­ing scale is very im­por­tant in the IT ser­vices market where most of the large clients are multi­na­tion­als that look for IT ser­vices providers with a wide ge­o­graphic de­ploy­ment ca­pa­bil­ity,” Takaen­desa said.

In its 2016 fi­nan­cial year, PSI re­ported rev­enue of $77.4m and profit be­fore tax of $4.9m. Net as­sets at the end of De­cem­ber 2016 were $11.1m.

Datatec said it be­lieved that ac­quir­ing PSI was the right de­ci­sion, be­cause the In­done­sian telecom­mu­ni­ca­tions sec­tor is the fourth largest in the world and the ICT market is con­tin­u­ing to show strong growth.

It said the trans­ac­tion will bring ad­di­tional scale to Log­i­calis’s In­done­sian op­er­a­tion and pro­vide an op­por­tu­nity to lever­age PSI’s skills and ex­pe­ri­ence in other lo­ca­tions across the re­gion.

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