OWN CORRESPONDENT, Johannesburg | Tuesday 12.15pm
INFORMATION technology firm Dimension Data Holdings Ltd said on Tuesday it will cut an original purchase price for the European networking operations of its rival, Comparex Holdings Ltd, to 250-million from 290-million Didata shares.
“As a result of the due diligence exercise, Didata and Comparex have agreed to alter the original purchase consideration,” Didata said in a statement.
It agreed in November to pay R8,12-billion for the networking business, settled in shares.
The deal will create the world’s largest independent network services company with operations in 35 countries, on four continents, and annual turnover of over R10-billion.
Didata said that the main reason for the adjustment was the behind-plan performance of Comparex’s networking operations in France and the United Kingdom, but was still confident the tie-up made sense.
“Didata remains confident of the long-term potential of Comparex networks and recognises the excellent progress made to date in developing a pan-European networking business,” it said.
The shares are to be issued at R28 each. Didata said it is finalising arrangements with Comparex to conclude the deal.