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Ngcaba's Convergence Partners pulls out of DiData

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 27 Jul 2017
Andile Ncgaba, chairman, founder and majority shareholder of Convergence Partners.
Andile Ncgaba, chairman, founder and majority shareholder of Convergence Partners.

Convergence Partners - an investment firm focused on the technology, media, and telecoms (TMT) sector in Africa - has exited its investment in specialist IT services and solutions company, Dimension Data Middle East & Africa (DiData).

Convergence Partners first invested in DiData in 2004 as part of the original DiData B-BBEE transaction and remained invested until June 2017.

The contractual investment term ended in September 2016 and Convergence Partners and DiData negotiated a consensual exit to the investment.

In a statement issued this morning, the investment firm says it has now fully exited its shareholding in DiData and Andile Ngcaba has stepped down from the various group boards on which he served and as executive chairman of DiData.

Convergence Partners continues to invest in TMT companies across sub-Saharan Africa that it believes will deliver enhanced returns for investors, while underpinning continental development, it adds.

Ngcaba was previously an activist aligned with the African National Congress during the struggle against Apartheid, and thereafter the director general of Communications in the first democratically elected government of SA in 1994. He left government in 2003 to pursue a career in the private sector.

In September 2004, Ngcaba led a Broad-Based BEE consortium that acquired a 25% stake in Dimension Data Middle East and Africa, later becoming executive chairman.

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