Nedcor buys 20% of IS from Dimension Data

Nedcor has acquired 20% of The Internet Solutions (IS) from Dimension Data for a consideration sum of R330 million.

IS has a 46% market share in the corporate Internet access market and, for the purposes of the transaction, has been independently valued at R1.65 billion.

Nedcor will benefit from the deal by sharing in IS`s transaction revenue growth and infrastructure. The banking group will also be the preferred payments provider for IS to facilitate the electronic transfer of funds.

Nedcor CEO Richard Laubscher says the deal is strategic to Nedcor`s e-commerce plans. "Banks have a narrow window of opportunity to stake a claim in the business-to-business e-commerce arena. Our investment in IS sets the foundation for Nedcor to build a suite of e-commerce services for our clients and the wider market," says Laubscher.

Dimension Data took full ownership of IS in 1997. IS focuses on corporate Internet access and its clients include Anglo American, Discovery Health, MTN and SAB.