Datatec on unstoppable spree for new assets

JSE-LISTED information and communications technology (ICT) company Datatec is continuing with its acquisition spree after it announced that its subsidiary, Thomas Duryea Logicalis (Logicalis), has acquired Computer Network Integration (CNI) for an undisclosed amount.

CNI is a Microsoft Certified Gold Partner based in Melbourne, Australia.

Datatec said CNI has been a focussed Microsoft Azure partner since 2012 and is known for its technical expertise, flexibility in delivery and strong customer partnerships, with annual revenues of $2 million (R29.51m).

The group added that the acquisition of CNI with its extensive Azure experience, unique IP and highly prized Microsoft Tier 1 CSP certification would enable Logicalis to compete more effectively in the rapid build and deployment of Azure-based hybrid cloud applications.

Datatec chief executive Jens Montanana said the CNI acquisition was important for the group as it allowed entry to new markets.

“The acquisition of CNI brings Logicalis a full suite of leading Microsoft cloud service capabilities, significantly strengthening our position in this growing market segment and enabling us to deliver a broader scope of services to new and existing customers,” Montanana said.

Datatec has been looking for new acquisitions after it disposed of its Westcon-Comstor business in North America and Latin America (Westcon Americas) to Synnex for a maximum consideration of $800m last year.

It also sold 10 percent of the remaining part of Westcon (Westcon International) to Synnex for $30m.

Early last month, Logicalis announced the acquisition of Clarotech, an IP telephony (IPT) cloud and managed services business based in Cape Town.

In May Logicalis also signed an agreement to acquire 100 percent of the issued share capital of Coasin Chile (Coasin), a Chilean ICT services and solutions provider, which also has operations in Peru for a cash consideration of up to $20.2m.

Peter Takaendesa, a portfolio manager at Mergence Investment Managers, said the acquisition of CNI did not move the dial for the Datatec group, given it is only a $2m revenue business.

“However the acquisition could grow its contribution to the group faster over time as it increases Logicalis’s exposure to the fast-growing cloud services market. We have seen other South African ICT companies such as Altron also expand their exposure to this segment of the market,” Takaendesa said.