Dual-listed Datatec has bought US-based Cisco partner Netarx for $34 million - or R228 million - to add to its Logicalis subsidiary.
The deal will be paid for through a combination of cash and deferred Datatec shares, which will be used to “align management shareholders who will be assuming key positions in the Logicalis US organisation,” says Datatec.
Netarx is based in Detroit, Michigan, and has annual revenue of about $60 million. It has more than 220 staff members, and provides collaboration and data centre technologies.
Datatec CEO Jens Montanana says the deal “builds on the already strong position held by Logicalis in the mid-west region, and will give Logicalis a dominant position within the Michigan solutions market”.
The dual-listed company says the deal builds on its presence in the mid-west of the US by expanding its IT consulting and services business, and enhancing Logicalis' managed services capabilities.
In addition, says Datatec, the acquisition creates cross-selling opportunities as there is little overlap between Logicalis' existing customer base and Netarx's offering in the Michigan area.
“Both Logicalis and Netarx are Cisco gold partners, so this acquisition also helps to strengthen this strategically important relationship,” says Montanana.
Share
