Datatec in $19m Asia Pacific expansion

10 December 2009

South African ICT group Datatec is to acquire the NetStar Group, a leading regional Asia-Pacific Cisco-focused network integrator with operations in Australia, Taiwan, Singapore, Malaysia, Hong Kong and China, for US$19.8-million (about R149-million) in new shares.

NetStar will become part of the Logicalis Group, Datatec’s ICT infrastructure solutions and service business.

“This earnings enhancing acquisition of this multinational business, with an excellent reputation, establishes a sizeable presence for Logicalis across South East Asia, China and Australia in one move,” Datatec CEO Jens Montanana said in a statement this week.

“In addition to now being able to provide our customers with wider international capabilities, NetStar provides the ideal platform for Logicalis to grow organically and by acquisition across the region.”

Logicalis has its largest operation in the US, with a significant business in the UK and Germany. It has also very successfully developed its business in South America during the past 10 years, and now enjoys a market leading position in many markets in that region, including Brazil and Argentina.

New markets, services

NetStar is a leading regional Asia-Pacific Cisco focused network integrator with operations in Australia, Singapore, Malaysia, Hong Kong, Taiwan and mainland China.

Previously called Anixter Asia, the business was acquired in 2000 by Barings Asia Private Equity following a management buyout and renamed NetStar. Since then the business has steadily grown its revenues, customers, employees and profitability.

It has a high quality customer base and operates across a wide variety of sectors including the government, telecommunications, hospitality and finance, while its multi-country presence across the Asia-Pacific region combined with its network operations centre in Malaysia allows it to support the needs of global and international corporations regionally.

“This development into the Asia Pacific region is also the next logical geographic step in Logicalis’ global expansion as it seeks to tap into faster growth and increasing demand for many of its advanced infrastructure and managed services solutions in this region,” Datatec said.

“Through an established and incorporated presence in mainland China, the NetStar acquisition will provide Logicalis with an entry into the most significant developing market in the world.”

SAinfo reporter

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