BUSINESS OF IT SERVICES

DIMENSION BUYOUT PONDERED

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 Corporation, according to people familiar with the matter. The executives are approaching lenders and investors to raise cash for a possible deal for Dimension Data’s Africa and Middle East operations, which could be valued at about $800 million (R11.5 billion), said the people, asking not to be identified because the deliberations are confidential. 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, a Johannesburg-based provider of cloud hosting services, 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 Africa and Middle East operations, said the people. NTT bought then London and Johannesburg-listed Dimension Data for £2.1 billion (R40.1bn) 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. | Bloomberg