South Africa’s Datatec Buys Out Carotek Division
Technology company Datatec has spent $6,9m (about R49,1m) to buy out the information tech- nology division of Carotek in the US, the company said last week.
The price will be covered by $3,4m in cash and by issuing 624092 new shares in Datatec. Carotek ITD will be folded into the US arm of Logicalis, Datatec's second-largest subsidiary which supplies technology infrastructure. The move will beef up the presence of Logicalis in five states and strengthen its ability to serve customers using technologies from HP.
The acquisition will add 30 staff and increase Datatec's annual revenue by about $25m, while pumping up its pretax profit by $1,5m.
CEO Jens Montanana said Datatec was a leading supplier of HP technologies in the US and elsewhere, and was committed to growing that business.
"This acquisition furthers our geographic reach into the southeast of the US and increases our sales and technical talent pool around HP enterprise products and services," he said.
Other expansion activities are still in the pipeline, particularly in emerging markets.
Montanana said last month two substantial acquisitions were pending in Africa as it bought out distributors active in markets including Nigeria. He also promised to strengthen its presence across Europe and begin operating in Turkey.
Datatec traded 10c down at R40,50 last week.
This week, Montanana exercised 700000 share options at a strike price of R10,96 and another 202369 with a strike price of R7,44, giving him another 900000 shares in the company for R9,17m.