Dimension Data, the $5.8 billion global solutions and services provider, has announced the acquisition of certain subsidiaries of NextiraOne, a European multinational communications company with 43 000 private and public sector clients.
Effective immediately, the two-part transaction will see Dimension Data acquire NextiraOne's businesses and its 1 850 permanent employees in Austria, Belgium, the Czech Republic, Germany, Hungary, Ireland, Luxembourg, the Netherlands, Poland, Portugal, Slovakia, Spain and the UK.
While Dimension Data did not disclose how much it acquired the business for, it says the transaction is "one of the largest acquisitions for the group in many years".
Dimension Data has also undertaken to acquire NextiraOne's operations in France and Italy in mid-2015, subject to the achievement of certain performance conditions.
Doubling revenue
Dimension Data CEO Brett Dawson notes that the group last year announced it would double its revenue over the next five years from $6 billion to $12 billion. "We tripled our business in the last 10 years, and now we're looking to double it through organic growth and strategic acquisitions." The purchase of NextiraOne, says Dawson, is the first major step on this five-year journey.
"With this transaction, Dimension Data will enter new market segments, grow our client base, and add 1 850 employees to the Dimension Data family. It also provides us with the opportunity to expand into the middle market."
He says the company's future strategy is to take the combined portfolios of both companies to the small and medium business, commercial, public sector, and enterprise markets. Dawson says NextiraOne's unified communications and collaboration business will allow Dimension Data to manage communications infrastructure across multiple platforms.
European footprint
Andrew Coulsen, CEO of Dimension Data Europe, notes that the acquisition will extend the company's footprint in Europe - from 10 to 16 countries. "We now now have a direct presence in six incremental countries including Hungary, Poland and Slovakia, Austria and Portugal, and Ireland. In countries where Dimension Data already has a presence, we have greater market share."
Coulsen says the group is also also adding 1 075 technical employees to its European business. "NextiraOne's strength in the public sector and commercial markets provides Dimension Data with the opportunity to expand into a new market area."
NextiraOne will be rebranded to Dimension Data over the next three months. Coulsen maintains his role as CEO of Dimension Data Europe and will lead the integration, while NextiraOne CEO Winn will lead the remaining NextiraOne France and Italy businesses, and at the same time, act as Dimension Data's advisor for client and vendor engagements.
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