Datatec to spend R524m to buy US tech firm

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Datatec, South Africa’s technology firm, is planning to spend $42 million (R524 million) to buy US-based Advanced Technology Integration Group (ATIG) from MCP.

The tech firm the acquisition will be facilitated through its subsidiary Logicalis, which has conditionally agreed to buy ATIG, a solution provider offering system integration and professional services to enterprise and commercial customers across the Midwest region of the United States.

Datatec is an international ICT solutions and services group operating in more than 60 countries across North America, Latin

Jens Montanana, Datatec's CEO
Jens Montanana, Datatec’s CEO

America, Europe, Africa, Middle East and Asia-Pacific. The Group’s service offering spans the technology, integration and consulting sectors of the ICT market.

The company saod the acquisition will consolidate Logicalis’ presence in the key Midwest region and present significant cross selling opportunities for its services offering.

Jens Montanana, Datatec’s CEO,  said: “ATIG adds significant scale to Logicalis’ presence in the Midwest and is central to the consolidation of our position in that market.

 “It also strengthens strategic relationships with key vendor partners Cisco, VMWare and HP and broadens our services scope into a new customer group.”

In the year ended 31 December 2014, ATIG had revenues of $133 million and the acquisition is expected to be earnings enhancing for Datatec.

ATIG employs over 100 skilled staff across 14 offices and provides enterprise networking, data centre, unified communications, cloud and managed services solutions to a range of vertical markets including healthcare, state and local government and education.

The acquisition is subject to a number of closing conditions and is expected to become effective in September 2015.

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