JSE-listed ICT services provider Datatec has reached an agreement to sell its Analysys Mason unit to Bridgepoint Development Capital (BDC) for as much as $260 million (R4.2 billion).
In a statement today, the ICT services provider referred its shareholders to the cautionary announcement released on the Stock Exchange News Service (SENS) on 24 May, which advised it had entered into negotiations in relation to a potential transaction regarding Analysys Mason.
Analysys Mason is a management consultancy firm focused on telecoms, media and technology.
Bridgepoint is a British private investment company listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.
Datatec says it entered into a definitive sale of shares agreement, in terms of which it proposes to sell its interest in Analysys Mason to BDC.
BDC, through Aramis Bidco, a new company incorporated for the purposes of the transaction, will acquire all of the issued shares in Analysys Mason at an enterprise value of £210 million, equivalent to approximately $260 million.
According to Datatec, the transaction constitutes a category one transaction in terms of the JSE’s listings requirements.
Therefore, it adds, closing of the transaction is subject to, among other things, Datatec shareholder approval.
It says a circular containing full details of the transaction, and convening a general meeting to approve the transaction, will be sent to shareholders in due course and in compliance with the JSE’s listings requirements.
The salient dates and times related to the transaction, including the date of the general meeting, will be announced on SENS on the day of distribution of the circular.
“Analysys Mason has developed significantly with Datatec’s support over the past 20 years, to become one of the world’s leading telecommunications, media and technology management consultancies with an enviable track record,” says Jens Montanana, CEO of Datatec.
“We believe the time is right to realise our investment now as part of our strategic review process, and we see Bridgepoint Development Capital as the ideal partners to take the business forward on its next growth phase, supported by significant reinvestment from management and employee shareholders.
“Datatec’s share of the proposed maximum transaction value, equating to approximately 38% of Datatec’s current market capitalisation, represents a great value realisation opportunity for shareholders. As with previous transactions, the net proceeds from the sale will be returned to shareholders.”
“We are very excited to partner with BDC, a proven partner for professional services firms looking to fulfil their ambitions and realise their full potential,” says Bram Moerman, executive vice-chairman at Analysys Mason.
“We are very thankful for the support and guidance provided by Datatec to help us grow to nearly $100 million in revenue over the last few years.”
“We’re delighted to partner with Analysys Mason and support its development as an independent platform,” says Matt Legg, partner of BDC.
“The business is the go-to consultancy for complex technical and regulatory TMT [technology, media and telecommunications] matters, and we share management’s ambition to grow the platform both organically through attracting talent and scaling in strategic geographies, as well as through further targeted acquisitions.”
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