Dual-listed Datatec says its subsidiary, Logicalis, will buy the European subsidiaries of 2e2, excluding the UK business, for EUR24 million - R283 million - in shares and cash from the company's administrators.
In January, 2e2's UK operations were put under administration after the group, one of the UK's largest IT services companies, failed to secure finance to repay its "considerable debt", reported InformationAge.
In a statement, Datatec, which wholly-owns Logicalis, says its UK operations have taken on some business, together with about 70 employees, from the UK 2e2 companies currently in administration. In total, it will hire about 500 staff.
European expansion
Datatec CEO Jens Montanana says the deal "immediately expands Logicalis' European footprint and enables us to improve our offering to Logicalis' multinational and Latin American clients. They also open service opportunities in new customer markets, which can be developed across the Logicalis group."
Logicalis is buying four separate businesses in Spain, Ireland, the Netherlands and the Channel Islands.
These include an IBM-focused system integrator in Spain, operating under the Morse trade name; an IBM-, NetApp- and HP-focused provider of enterprise hardware and software solutions and services in the Republic of Ireland, operating under the Morse trade name; a HP- and Xerox-focused provider of managed services solutions in the Channel Islands; as well as a provider of IT service management consulting services and solutions in the Netherlands.
2e2 calls itself an ICT lifecycle services provider, focused on the provision of end-to-end next-generation IT services. It focuses on solutions and managed services for medium and large private and public sector organisations, delivered on premises, in the cloud, hosted as a managed service or as a hybrid.
2e2 says on its Web site that it has "the highest level of accreditation" with Cisco, Microsoft, Oracle, HP and Check Point. In June 2010, it bought Morse and its turnover is around £430 million. It has more than 2 000 staff in the UK, Ireland, Spain, Benelux, US, Channel Islands and the Isle of Man.
Logicalis is an international IT solutions and managed services provider that employs about 3 500 people worldwide. It has almost 6 000 corporate and public sector customers, and partners with Cisco, HP, IBM, CA Technologies, NetApp, VMware and ServiceNow.
The group has annualised revenue of more than $1.2 billion from its operations in the UK, US, Germany, Latin America and Asia Pacific.
Datatec says the four businesses it is buying had combined unaudited revenue of around $150 million in the year to December 2012, while unaudited earnings before interest, tax, depreciation and amortisation was more than $8 million. 2e2's latest financial statements are not available on its site.
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