Johannesburg, 29 Mar 1999
Datacentrix has announced three acquisitions, that of Supported Software, Langraphix Cape and Network Architects. The transactions have a combined value of more than R44 million, which will be settled as a mix of shares and cash.
Supported Software, which is being acquired for R38.5 million, formed a part of the PQ Africa group until a management buy-out in March 1998. It focuses on network management, storage management and enterprise data exchange.
Langraphix, based in Cape Town, will effectively serve as the Western Cape division of Datacentrix, while the Durban-based Network Architects will become the KwaZulu-Natal division.
"We were doing a lot of business in these areas and it made sense to own our partners there," says sales and marketing director Klaas Lammers. He says the company has no immediate intention of expanding into other areas of the country.
According to the announcement, the Supported Software acquisition will enhance Datacentrix`s offering by increasing the range of software solutions and services, complementing its current line of business. The acquisition also provides Supported Software with a black empowerment partner, which is expected to give it a strategic advantage in the negotiation of governmental and parastatal contracts.
A 28.6% rise in earnings is predicted as a result of the acquisition.
Datacentrix is expected to release its interim financial results on 14 April. Although the company would not comment on its expectations, investment advisors are expecting the results to exceed projections and have given it a "buy" recommendation.
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