Dimension Data on Tuesday announced its intention to acquire the remaining 44,9% of the Singapore-listed shares of its Asian subsidiary, Datacraft, for total purchase price of $276-million, or about R2,1-billion.
The offer is being pitched at $1,33 per share, which represents a premium of 34% to Datacraft’s closing share price of 99 US cents on Monday this week.
Dimension Data said in a statement to the JSE that the acquisition would be effected by way of a scheme of arrangement under Singapore law and is being financed with a combination of cash and equity issuance.
The global IT solutions and services provider first acquired a controlling stake in Datacraft in 1997, from which time Datacraft has operated as a separate brand.
Datacraft’s regional performance has been strong with its quarter-two 2008 results delivering revenue growth of 25,5% year-over-year and a 24,9% increase in after-tax profit.
The acquisition must pass various regulatory and shareholder approvals prior to completion.
Dimension Data anticipates this process will take several months.
“We are excited about the opportunity to acquire the remaining shares of Datacraft, taking into consideration the growth prospects in Asia and the competitive landscape in our industry,” Brett Dawson, CEO of Dimension Data, commented.
“Integrating Datacraft as a wholly owned subsidiary will provide greater flexibility and place us in a better position to capture market opportunities,” Dawson added.
Datacraft has a presence in 13 countries and the acquisition is seen as a logical step for Dimension Data.
Assuming the acquisition is completed, Dimension Data anticipates very few changes in Datacraft’s operations, as strong alignment between the two companies already exists. — I-Net Bridge