Datatec unit Logicalis buys into two European businesses

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Datatec CEO Jens Montanana.
Datatec CEO Jens Montanana.

International ICT solutions and services group Datatec’s subsidiary, Logicalis has acquired two businesses in Europe.

In a statement, the company says Logicalis Group has purchased a 70% interest in Cilnet, a Cisco systems integrator and managed services business in Portugal, which increases Logicalis’ Cisco technical expertise for the Iberian region and complements the existing Spanish operation with data centre, collaboration, networking, infrastructure and managed services capabilities, expanding the offering to the region.

Cilnet was founded in 2000 and has over 90 employees, including eight Cisco certified internetwork experts.

The company designs and integrates networking, data centre and contact centre solutions, complemented with security, managed services and application development skills.

Cilnet's annual revenues are approximately EUR20 million.

In addition, Logicalis Germany, has acquired Orange Networks, a Microsoft services business focused on Microsoft cloud and managed services, with Germany wide presence including Hamburg, Munich, Offenbach and Düsseldorf.

The company notes that this acquisition advances Logicalis Germany to Microsoft Gold Certified Partner status and enhances its hybrid cloud offering.

Orange Networks was founded in 2004 with its headquarters in Hamburg. It has 36 employees whose strategic and technical expertise in Microsoft cloud technologies and innovation enable it to support its customers’ digitisation projects by providing a broad offering of consulting services, development, deployment, and managed services across the Microsoft portfolio.

Annual revenues of Orange Networks are approximately EUR5 million.

Jens Montanana, Datatec's chief executive officer, comments: “Both these acquisitions bring additional expertise and experience that will prove valuable to Logicalis’ existing client base in Europe.

“Cilnet will augment our Cisco offerings across the whole region of Iberia, increasing our capabilities and expanding our service portfolio. Orange Networks’ Microsoft Azure skill sets in the cloud space will provide additional expertise and experience both in Germany and other parts of Europe.”

Logicalis is continuing with its acquisition trail. In July this year, it acquired Mars Technologies, an IT services business, with offices in Cape Town, Johannesburg, Port Elizabeth, Durban and East London, employing 76 staff.

According to the group’s audited provisional results for the year ended 28 February, Logicalis’ revenue grew by 11.3% to $1.7 billion and earnings before interest, tax, depreciation and amortization by 8.4% year-on-year, to $93.4 million.

Logicalis is the largest profit contributor to the group, despite only contributing 40% of the group’s revenue, and also has the widest geographical exposure. Datatec says it intends to continue to develop and grow Logicalis globally, through organic and acquisition activities.

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