Dimension Data (DiData), South Africa’s largest information technology company, is expected to announce it is involved in further takeover talks today that will strengthen its activities in the US though the stock market is still frowning on its last acquisition.
News earlier this week that is buying the European networking businesses of rival Comparex Holdings for 8.12 bn rand ($1.3bn) led to its share price had falling 6.12% to 32.2 rand ($5.15) on Wednesday on fears of the impact on earnings. Comparex shares also did badly, falling 4.88% to 39 rand ($6.24).
DiData will have a market capitalization of about 34bn rand ($5.5bn) on completion of the transaction. The acquisition will create an independent network services company with operations in 35 countries on four continents and revenue of 10bn rand ($1.6bn).
Once the deal goes through DiData claims it will have approximately 20% of the pan European network integration enterprise services market. In Asia, its market share is around 20%; in Australia it holds 25% of the market; and in Southern Africa, Dimension Data dominates with about 40% of the market.
