Johannesburg, 07 Sep 2006
Logicalis, Datatec Group`s IT and networking systems integration company, today announced a new business acquisition that will significantly enhance the company`s position as a strategic IBM partner in the US market.
Logicalis acquired Computech Resources, an IBM Premier Business Partner and a $35 million solution provider of IBM products and services, based in Green Bay, Wisconsin.
The acquisition will strengthen the IBM business consulting capabilities of Logicalis` US operations and will enhance the company`s Midwest presence by adding 65 professionals, boosting the total number of employees to over 500 in the US.
The acquisition will also increase Logicalis Group`s US revenue to nearly $500 million and increase its presence in several major metropolitan US markets including Green Bay, Milwaukee and Minneapolis. It also extends Logicalis` capability to provide IBM based solutions to the small and medium business environment. Logicalis` acquisition of Computech Resources follows shortly after Logicalis` European operations finalised the acquisition of a small Saarbrucken-based German ICT services organisation called re:solution (Reichert Network Solutions GmbH). The re:solution business will operate under the Intact Integrated Services banner, an independent services organisation within the Logicalis Group.
The acquisition of re:solution has placed Intact Integrated Services in a position to offer channel customers access to specialised skills in seven German cities and to provide a support capability across Northern and Central Europe.
According to Jens Montanana, CEO of Logicalis Group, these acquisitions will further extend Logicalis` capabilities in the US and Europe. "They will also support the company`s goal to act as a single-source solution provider and to become a dominant supplier in the sector delivering secure, converged computing and communications infrastructure and services to business and the channel," he says.
This is the fourth acquisition made by the Datatec Group in the new financial year. The group made five acquisitions last year, all of which have been successfully integrated.
In May 2006 Datatec reported healthy results, posting an 18% increase in revenue to $2.98 billion and achieving a nearly six-fold increase in operating profit to $69 million. Logicalis Group, which restructured its UK business earlier this year, performed strongly in the last financial year with revenue excluding acquisitions rising 16% to $440.3 million and revenue including acquisitions growing to $545.6 million. Logicalis` earnings before interest, tax, depreciation and amortisation nearly doubled to $16.7 million and it posted gross margins of 20%.
Montanana expects these acquisitions to contribute positively to Datatec`s earnings in the current financial year. He adds that Logicalis will continue to look for strategic acquisitions in Europe and in America, particularly where solution providers deliver complementary vendor lines, resources and capabilities that strengthen the group`s product and service offerings.
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