Datatec Limited Logicalis to acquire a majority stake in PSI (5639I)

TIDMDTC

RNS Number : 5639I

Datatec Limited

20 June 2017

20 June 2017

Datatec Limited

Logicalis to acquire a majority stake in Packet Systems Indonesia

Datatec Limited ("Datatec"), the international Information and Communication Technology (ICT) group, announces that its subsidiary Logicalis Group Limited ("Logicalis"), and its Indonesian partner Metrodata, have agreed to acquire a majority stake in Packet Systems Indonesia ("PSI"), a leading ICT systems integrator and service company. PSI will be integrated with Logicalis Metrodata Indonesia ("LMI"), the existing Indonesian operation of Logicalis.

PSI is a Cisco Gold Partner specialising in data centre, collaboration, information security solutions as well as Service Provider & Enterprise Network. Established in 2004, PSI has built a strong business in the telecommunications ("telco") sector.

PSI's 2016 revenues were $77.4 million and profit before tax was $4.9 million. Net assets at 31 December 2016 were $11.1 million and PSI has 240 employees.

The acquisition will be effected by Logicalis acquiring 54% of PSI and Metrodata acquiring a 14% shareholding. The remaining 32% will continue to be held by PSI management shareholders. The total consideration payable by Logicalis will be $6.8 million in cash funded from Logicalis' existing bank facilities.

The Indonesian telco sector is the fourth largest in the world and the ICT market is continuing to show strong growth. The transaction will bring additional scale and new customer relationships to Logicalis' Indonesian operation and provide an opportunity to leverage PSI's telco skills and experience in other Logicalis locations across the region. Logicalis' newly established Security Managed Service practice in the Asia Pacific region, based out of Singapore, will support new service offerings to customers in Indonesia.

Through this transaction, PSI will also bring its own portfolio of digital solutions and services to existing and new customers, in both the telco and enterprise markets, such as Internet of Things, software defined technologies and data analytics.

Jens Montanana, Datatec Chief Executive Officer, commented:

"This acquisition is strategically important for Logicalis as it will serve to enhance its operations beyond Indonesia and across the Asia Pacific region. Blending Logicalis' methodology and experience with PSI's scale and customer reach will bring wider scale and customer relationships across a number of high growth regional markets."

The transaction is expected to close in the third calendar quarter of 2017.

Enquiries:

 
 Datatec Limited (www.datatec.co.za) 
 Jens Montanana, Chief Executive 
  Officer 
  Ivan Dittrich, Chief Financial                         [phone] 
  Officer                                                [phone] 
 Wilna de Villiers, Group 
  Investor Relations                                     [phone] 
 
 Jefferies International Limited - Nominated Adviser 
  and Broker 
 Nick Adams/Simon Hardy                                 [phone] 
 
 Instinctif Partners 
 Frederic Cornet/Pietman Roos 
  (SA)                                                   [phone] 
 Adrian Duffield/Chantal Woolcock 
  (UK)                                                  [phone] 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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June 20, 2017 02:00 ET (06:00 GMT)