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Datacentrix acquires Pinnacle's Infrasol for R85m

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 17 Apr 2015

Datacentrix has entered into a sale of shares agreement with Pinnacle Holdings to acquire 100% of the latter's Infrasol and Merqu Communications businesses for R85 million.

The companies announced the move to shareholders today, saying Infrasol and Merqu would be acquired as one indivisible transaction.

Infrasol and Merqu are design and development businesses with project management expertise focused on large network infrastructure, data centre design and the implementation of solution projects, which work through a national footprint of dedicated installers.

The consolidated value of net assets of the Infrasol business subject to the acquisition as at 30 June 2014, was R22 896 million and the profit after tax for the year to June 2014 was R13 444 million, notes Pinnacle.

The effective date of the sale is 1 July 2015.

Off-market deal

In mid-2013, Pinnacle spent R237.3 million to buy almost 30% of Datacentrix in an off-market deal, in a bid to determine whether there was potential to develop a working relationship in the future.

Pinnacle bought 61.2 million shares, at 388c each, from Coordinated Network Investments and Hoolican Investments, which no longer wanted exposure to a listed company.

Datacentrix's shares closed at 390c yesterday, gaining 14.71% on the news on a day the JSE's all-share index closed slightly down.

Pinnacle corporate FD at the time, Chris Smyth, said Pinnacle made the move because the company was running out of scope to make acquisitions in the distribution sector. He said Pinnacle had around 30% to 40% of the market, and was not likely to be allowed to buy out any further distributors.

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