Dimension Data Holdings, the South African network services group has revealed plans for a UK or US listing, following Monday’s acquisition of 49.9% of a UK network integrator. DDH has made no secrets of its international plans, since it made its first move into the European network integration arena with the acquisition of GK Communications Ltd in January. The company was until then confined to Africa and Asia-Pacific, excepting a small call-center consideration in the UK, but now intends to take advantage of telecom deregulation to establish itself in Europe.
Monday’s 49.9% acquisition of Chernikeeff Networks Ltd, for 100m pounds ($161.4m) was called a platform to push DDH products and services in Europe. The company said that Chernikeeff, at 56m pounds ($90.5m) annual revenue, is the largest Cisco supplier in the UK, with 23% of the network integration market.
The Johannesburg-listed company has confirmed it will seek an offshore listing, probably in London (although Nasdaq has not been ruled out), to finance further growth. If it listed on the LSE, it would be in the top five IT companies, with a market cap of around $3.08bn. In order to do so, it first needs permission from the South African finance ministry, but seems in no great hurry. In the meantime, DDH is seeking a meaningful networking presence in the US.
