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Datatec buys out US IBM partner

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 07 Sept 2006

JSE-listed Datatec Group`s IT and networking systems integration company, Logicalis, has acquired an IBM premier business , Computech Resources.

The $35 million solutions provider of IBM products and services is based in Wisconsin. In a statement, Datatec said the acquisition "will significantly enhance the company`s position as a strategic IBM partner in the US market".

The acquisition will also increase Logicalis`s US revenue to nearly $500 million and increase its presence in several major metropolitan US markets. It also extends Logicalis`s capability to provide IBM-based solutions to the small and medium business environment, the company said.

CEO Jens Montanana says recent acquisition activity by the company will extend Logicalis`s capabilities in the US and Europe. "They will also support the company`s goal to act as a single-source solution provider and to become a dominant supplier in the sector delivering secure, converged computing and communications infrastructure and services to business and the channel," he says.

This latest acquisition follows a European acquisition that saw Logicalis`s European operation buy out re:solution, a small German ICT services organisation. The acquisition of Computech is the fourth acquisition made by the Datatec Group in the new financial year. The group made five acquisitions last year, all of which have been integrated.

Montanana expects these acquisitions to contribute positively to Datatec`s earnings in the current financial year. He adds that Logicalis will continue to look for strategic acquisitions in Europe and America, particularly where solution providers deliver complementary vendor lines, resources and capabilities that strengthen the group`s product and service offerings.

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