Datatec Limited (Datatec, JSE and LSE: DTC), the international information and communications technology (ICT) group, has acquired from Carotek, Inc its Information Technology Division (Carotek ITD), based in Matthews, North Carolina, for $6.9 million to be settled by $3.4 million in cash and the issue of 624 092 new ordinary ZAR0.01 shares in Datatec.
The vendors have entered into a restriction over selling these shares.
Carotek ITD will be integrated into the US operations of Logicalis, Datatec's international provider of integrated ICT solutions.
The acquisition will increase Logicalis' presence in the Carolinas, Georgia, Alabama, Tennessee and Florida while strengthening its ability to service HP business accounts.
The acquisition of Carotek ITD will add approximately 30 staff members and increase Datatec's annual revenue by an estimated $25 million and increase annual EBITDA by approximately $1.5 million. Carotek ITD has been acquired free of cash and debt.
Application has been made to the London Stock Exchange for the admission of the 624 092 ordinary ZAR0.01 shares to the Alternative Investment Market, and to the JSE Limited for the listing of these shares. Listing on both exchanges is expected to become effective on 8 June 2007.
Jens Montanana, Chief Executive of Datatec, says: "As a leading HP enterprise systems partner both in the US and abroad, Datatec is committed to supporting Logicalis' development of its HP business and in delivering the best solutions around server consolidation and virtualisation, e-mail management and archiving, enterprise management and managed services. This acquisition furthers our geographic reach into the southeast of the US and increases our sales and technical talent pool around HP enterprise products and services."
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Datatec is an international information and communications technology (ICT) group focused on the supply of advanced ICT and the delivery of professional services into the higher growth segments of the global market. The group's main lines of business comprise the global distribution of advanced networking and communications convergence products (Westcon), IT infrastructure solutions and network integration (Logicalis) and strategic telecommunications consulting (Analysys Mason Group). Datatec is registered in South Africa and its shares are listed in Johannesburg and London. The group has 2 500 employees around the world.
In the year to 28 February 2007, the group reported an increase in revenue of 17% to $3,168 million (2006: $2,715 million), operating profit increased 45% to $100 million (2006: $69 million), and headline earnings per share grew to 40.80 cents (2006: 26.9 cents). Logicalis (www.logicalis.com) is a global provider of high-performance technology solutions. With over 1 300 people worldwide, Logicalis delivers smart solutions based on specific needs, not the latest IT trend. Logicalis provides options, direction and support to more than 5 000 corporate and public sector customers. The company contributes its success to the everyday positive experiences with its customers and strategic partners such as IBM, HP, Cisco and EMC.
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