Acquisition of US-based Advanced Technology Integration Group for $42 million

Datatec Limited (“Datatec” or the “Group”, JSE and LSE: DTC), the international Information and Communication Technology (ICT) group, announces that its subsidiary, Logicalis, Inc. (“Logicalis”), has conditionally agreed to acquire Advanced Technology Integration Group (“ATIG”), a solution provider offering system integration and professional services to enterprise and commercial customers across the Midwest region of the United States, for up to $42 million (including contingent consideration) from MCPc, Inc. (“MCPc”).

The acquisition will consolidate Logicalis’ presence in the key Midwest region and present significant cross selling opportunities for its services offering. Its offering is highly complementary to Logicalis’. MCPc is selling ATIG to focus on their end user computing business, an area where Logicalis does not operate.

In the year ended 31 December 2014, ATIG had revenues of $133m and the acquisition is expected to be earnings enhancing for Datatec.

ATIG employs over 100 skilled staff across 14 offices and provides enterprise networking, data centre, unified communications, cloud and managed services solutions to a range of vertical markets including healthcare, state and local government and education.

The acquisition is subject to a number of closing conditions and is expected to become effective in September 2015.

Jens Montanana, Datatec’s Chief Executive Officer, commented:

“ATIG adds significant scale to Logicalis’ presence in the Midwest and is central to the consolidation of our position in that market.

“It also strengthens strategic relationships with key vendor partners Cisco, VMWare and HP and broadens our services scope into a new customer group.”


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