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CompComm approves DiData's acquisition of Hatch

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 06 Oct 2017
The CompComm recommends the proposed merger between Dimension Data and Hatch be approved.
The CompComm recommends the proposed merger between Dimension Data and Hatch be approved.

The Competition Commission has recommended the proposed merger between Dimension Data and Mauritius-based Hatch Investments be approved.

The merger is approved subject to public interest conditions relating to employment and the impact on an industrial sector or region, says the Competition Commission in a statement.

Under the deal, Dimension Data will subscribe for Hatch shares, and then Hatch will buy back the Hatch shares held by Adcorp subsidiary Adcorp Workforce Management Solutions, the unit that housed the Nihilent investment. Nihilent is a Hatch subsidiary.

Adcorp says it had invested about R141 million in Nihilent so far. Its share of profit from the investment in the year to end-February 2017 was R23.4 million.

Dimension Data is an IT services provider that offers end-to-end IT solutions for clients in SA, the Middle East and the rest of Africa.

In SA, Dimension Data operates through various subsidiaries and divisions that specialise in IT and communication services.

Hatch, through its subsidiary Nihilent, provides enterprise transformation consulting services in SA. These comprise enterprise transformation and change management, digital transformation and enterprise IT services.

Although Nihilent offers services that include elements of traditional IT services, it is a specialised consulting firm that applies scorecards and alignment, design thinking, user experience and usability modelling, machine learning, analytics, statistical modelling and similar methodologies in conceptualising and delivering solutions.

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