Datatec Limited, a Johannesburg Stock Exchange (JSE) listed international Information and Communications Technology (ICT) group, has announced that its subsidiary Logicalis has acquired the business and assets of Netarx LLC, a Cisco Gold partner and provider of managed services, data centre and collaborative IT solutions to customers in the mid-west US.
The maximum consideration of $34 million 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.
Netarx, which is based in Detroit Michigan, has annual revenues of about $60 million and more than 220 employees. This 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.
Jens Montanana, Datatec’s Chief Executive Officer says “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.
“Both Logicalis and Netarx are Cisco Gold Partners so this acquisition also helps to strengthen this strategically important relationship.”
By: Staff Writer