As part of its US expansion policy, Dimension Data has reached an agreement to acquire North Carolina network integration company, Matrix Networking Group, for $16 million.
DiData sees the acquisition of Matrix as complementary to Premier Systems Integrators, which it acquired on 1 April. Premier focuses on the server/storage market and application management, while Matrix concentrates on the network integration side.
DiData`s Global Services Operating Architecture (GSOA) will be allied to the two companies and DiData hopes this will position it as a leading e-business enabler in the south-eastern US.
"The Matrix acquisition will enable us to fast-track the group`s growth in the region by boosting our quota of highly-skilled networking professionals and providing the impetus required to build a successful networking business," says Adrian Liddiard, Dimension Data`s US VP of Business Development.
"This deal is crucial for us as the product mix and complementary nature of Premier and Matrix significantly expands our footprint in the south-eastern US.
"This is our sixth acquisition in the US in the last 18 months and, with the recent Premier acquisition, gives us a comprehensive presence on the East Coast. With 15 offices in the US and revenue approaching $600 million on an annualised basis, we believe Dimension Data is now one of the largest network businesses in east US."
In a previous ITWeb article, Liddiard said DiData would be making several US acquisitions, eyeing companies in the network services space in Chicago, Atlanta, Texas and the West Coast.
Financial director Malcolm Rutherford said the group would be looking to increase its presence in the US arena with a view to a possible listing on one of the US bourses.
Matrix has over 150 clients with reported revenues of $25 million for the year to February 2001 with net assets of $2.2 million.
The Matrix deal will become effective on 1 May 2001 subject to due diligence and approval of the boards of both companies and the US anti-trust authorities. It will be settled with an initial payment of $7.6 million, with the remainder deferred over 18 months.
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