DTC
DTC
Datatec - UK Acquisition Enhances Relationships With IBM And HP
DATATEC LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1994/005004/06)
ISIN: ZAE000017745 & Share Code: DTC
("Datatec" or "the Company")
UK ACQUISITION ENHANCES RELATIONSHIPS WITH IBM AND HP
Datatec Limited ("Datatec", JSE and LSE: DTC), the international
Information & Communications Technology (ICT) group, announces the
acquisition of certain assets of the CSF Group, namely CSF Solutions Ltd
(CSF), a UK-based enterprise IT solutions provider, and has also agreed
terms to acquire from CSF Managed Services Plc the assets of a tier III
Data Centre in Bracknell. The aggregate consideration for the business and
assets will be approximately GBP6 million, and will be paid partly in cash
and partly by the issue of 419,948 new ordinary ZAR0.01 shares in Datatec.
CSF will be integrated into the UK operations of Logicalis, the Group"s
international provider of integrated ICT solutions. Following this
acquisition, Logicalis UK will have annualised revenues of over $300
million which will increase the Logicalis Group"s annualised revenues to
over $800m.
CSF, which has annualised revenues of approximately GBP40 million ($78
million), was founded in 1991 and employs circa 70 staff, from a head
office in central London and regional offices in Dudley and Warrington. CSF
plans, deploys and manages enterprise IT solutions, principally based
around IBM and HP products, supported by a wide range of professional and
managed services.
The acquisition of CSF will significantly augment Logicalis" UK operations
by bringing further scale to its strategic relationships with IBM and HP,
enhancing its enterprise computing and storage capabilities and bolstering
its data-centre presence. The transaction facilitates Logicalis acquiring
IBM z-series mainframe accreditation in the UK, making it one of only a
handful of organisations to possess this capability on both sides of the
Atlantic. The acquisition of CSF"s data centre in Bracknell also
strengthens Logicalis UK"s managed service capabilities, a key focus for
growth.
Application has been made to the London Stock Exchange for the admission of
the 419,948 ordinary ZAR0.01 shares to the Alternative Investment Market,
and to the JSE Limited for the listing of these shares. Listing on both
exchanges is expected to become effective on 7 December 2006.
Jens Montanana, Chief Executive of Datatec, comments:
"When we listed on AIM in October, we stated that we planned to enhance
Logicalis" service capabilities through a combination of organic
development and strategic acquisition.
"The acquisition of CSF significantly strengthens Logicalis UK"s market
position by enabling it to provide a complete ICT offering encompassing
building both enterprise computing infrastructures and intelligent
networks, as well as delivering the services and applications that run
across them."
4 December 2006
Enquiries:
Datatec Limited
(www.datatec.co.za)
David Pfaff, Group Finance
Director
Wilna de Villiers, Group +27 (0) 11 233 1013
Marketing Manager
College Hill (UK press)
Adrian Duffield/Corinna Dorward + 44 (0) 20 7457 2020
Fleishman-Hillard (SA press)
Michelle de Pons/Lucien Vallun + 27 (0) 11 548 2000
Note to Editors
Datatec is an international Information & Communications Technology (ICT)
group focused on the supply of advanced ICT and the delivery of
professional services into the higher growth segments of the global market.
The Group"s main lines of business comprise the global distribution of
advanced networking and communications convergence products (Westcon), IT
infrastructure solutions and network integration (Logicalis) and strategic
telecommunications consulting (Analysys Mason). Datatec is registered in
South Africa and its shares are listed in Johannesburg and London. The
Group has 2,500 employees around the world.
In the six months to 31 August, the Group reported an increase in revenue
of 16% to $1.67 billion (2005: $1.44 billion), EBITDA increased by 32% to
$52,0 million (2005: $39.5 million), operating profit increased by 44% to
$43.3 million (2005: $30.1 million), and headline earnings per share grew
to 15.65 cents (2005: 12.02 cents).
Logicalis is an international provider of integrated ICT solutions,
delivering secure, converged computing and communications infrastructure
and services which sources it products from OEMs and distributors.
Logicalis is headquartered in Slough, UK and with operations in nine
countries in North America, South America and Europe and approximately
1,000 employees. Logicalis provides the architecture, deployment,
integration and management of networks and systems to deliver solutions for
customers. These customers include mid market and large enterprise
customers. Logicalis is well positioned to continue to play a consolidating
role in its core markets of the US and UK, and elsewhere. In the six months
to 31 August 2006, revenue was up 39% to $342.6 million (2005: $247.3
million) and EBITDA increased 59% to $11.8 million (2005: $7.4 million).
Date: 04/12/2006 12:00:11 PM Produced by the JSE SENS Department
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