DTC
DTC
DTC - Datatec Limited - Logicalis acquires Detroit IT Service Business Netarx
Datatec Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1994/005004/06)
ISIN: ZAE000017745
Share Code: DTC
LOGICALIS ACQUIRES DETROIT IT SERVICE BUSINESS NETARX
Datatec Limited ("Datatec", JSE/AIM: DTC), the international Information and
Communications Technology (ICT) group, announces that its subsidiary Logicalis
has acquired the business and assets of Netarx LLC ("Netarx") a Cisco Gold
partner and provider of managed services, data centre and collaborative IT
solutions to customers in the mid-west USA. The maximum consideration of $34
million will be paid in a combination of cash and deferred Datatec shares in
order to align management shareholders who will be assuming key positions in the
Logicalis US organisation.
Based in Detroit Michigan, Netarx has annualised revenues of approximately $60
million and more than 220 employees. This acquisition builds upon Logicalis`
existing strong mid-western presence by expanding its IT consulting and services
business and enhancing Logicalis` Managed Services capabilities through the
addition of Netarx`s proven expertise in collaboration and data centre
technologies.
The acquisition also brings significant cross selling opportunities as there is
little overlap between Logicalis` existing customer base and Netarx`s offering
in the Michigan area.
Jens Montanana, Datatec`s Chief Executive commented:
"This acquisition builds on the already strong position held by Logicalis in the
mid-west region, and will give Logicalis a dominant position within the Michigan
solutions market.
"Both Logicalis and Netarx are Cisco Gold Partners so this acquisition also
helps to strengthen this strategically important relationship."
Enquiries:
Datatec Limited (www.datatec.co.za)
Ivan Dittrich - Chief Financial +27 (0) 11 233 1221
Officer
Wilna de Villiers - Group Marketing +27 (0) 11 233 1013
Manager
Jefferies International Limited
Chris Snoxall +44 (0) 20 7029 8000
College Hill
Adrian Duffield/Rozi Morris (UK) +44 (0) 20 7457 2020
Frederic Cornet (SA) +27 (0) 11 447 3030
4 July 2011
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 04/07/2011 08:15:12 Produced by the JSE SENS Department.
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