Datatec strengthens US presence

6 July 2011

JSE-listed IT group Datatec says its subsidiary, Logicalis, has acquired Netarx, a provider of managed services, data centres and IT solutions to customers in the mid-west USA, for about US$34-million.

The amount will be paid in a combination of cash and deferred Datatec shares in order to align management shareholders who will be assuming key positions in the Logicalis US organisation.

“This acquisition builds on the already strong position held by Logicalis in the mid-west region, and will give Logicalis a dominant position within the Michigan solutions market,” Datatec CEO Jens Montanana said in a statement this week.

Significant cross-selling opportunities

Based in Detroit Michigan, Netarx is a Cisco Gold partner and has annualised revenues of approximately $60-million and more than 220 employees.

The acquisition builds upon Logicalis’ existing strong mid-western presence by expanding its IT consulting and services business and enhancing Logicalis’ managed services capabilities through the addition of Netarx’s proven expertise in collaboration and data centre technologies.

The acquisition also brings significant cross-selling opportunities, as there is little overlap between Logicalis’ existing customer base and Netarx’s offering in the Michigan area.

“Both Logicalis and Netarx are Cisco Gold Partners so this acquisition also helps to strengthen this strategically important relationship,” said Montanana.

SAinfo reporter

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