The target operation, called Logicalis A/NZ, specializes in reselling and implementing security, voice over IP and wireless technology, and has close relationships with IBM Nortel Networks and Cisco Systems. It made revenue of around $100m in the year to August 31, 2003, and has 300 employees.
Logicalis A/NZ’s current parent company is Johannesburg, South Africa-based Datatec, which said that it would use the proceeds from the sale to fund future acquisitions and to strengthen its balance sheet. Datatec announced earlier this month that it planned to float its US-based networks distribution arm WestCon Group Inc.
IBM will pay $66m for Logicalis A/NZ, including $46m in cash plus a repayment of inter-company loans and payables of $20m. The deal will rank IBM as the second largest IT services provider in New Zealand where it has some 450 services employees, behind EDS Corp and ahead of local player Telecom Advanced Solutions. EDS won a $380m deal with New Zealand dairy company Fonterra last December.
This article is based on material originally published by ComputerWire
