Datatec subsidiary Logical has sold its French operations to a consortium that includes its current management.
This is the second business Datatec has sold in a week, the first being its 55% stake in Affinity Logic, which was bought by JSE-listed UCS Group.
The value of the latest deal has not been disclosed.
In May, Datatec reported its first operating loss in its 17-year history and a headline loss of 68c a share.
The performance was blamed mainly on lower margins in the industry, costs associated with downsizing and restructuring, and initial trading losses from Landis Business Partners operations in Europe.
However, Logical, a professional services and IT network integration company, was also a contributor to the losses.
Logical incurred an operating loss of R64 million for the 11 months to end-February and CEO Jens Montanana said at the time that while a restructuring had benefited the subsidiary, the French business was still performing poorly.
Logical is headquartered in London and operates in more than 10 countries.
Montanana says the sale is consistent with Logical`s strategic direction to focus on countries where it has greater critical mass.
"Logical is concentrating on areas where it has demonstrable differentiation, rather than be distracted by activities which require disproportionate investment and management time," he says.
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