Com Tech parent coughs up $2 billion for Comparex

Com Tech's parent company, Dimension Data, has acquired the European networking business of South African competitor Comparex Holdings for around $2 billion.

Once finalised, the deal will make Dimension Data one of the world's largest networking services companies, with representation in four continents - Africa, Europe, Asia and Australia. The acquisition gives Dimension Data significant penetration into the European market.

According to Com Tech's managing director, David Shein, the company is expecting its Australian business will pick up international business from the deal.

"The opportunity is for us to say we will have a global footprint for multiservice networks," he said.

The deal does not include Comparex's international storage, open systems, enterprise, consulting and security businesses, as well as all of Comparex's South African businesses.

Dimension Data is South Africa's largest IT integration company.

Meanwhile Nedcor Limited, which currently holds 25 per cent of Dimension Data's international businesses, will acquire a 20 per cent interest in Comparex Networks for $278 million and a reduction of its holding in Dimension Data to 20 per cent.

"The proposed transaction is in line with Dimension Data's stated goal of providing end-to-end, 24 x 7 x 365 networking services to multinational and other corporates around the world," said Dimension Data's chairman, Jeremy Ord.

"It will also provide an excellent platform for us to market our complementary e-commerce solutions in Europe as we have done successfully in South Africa and Australia.

Comparex Holdings management will not assume positions within Dimension Data and there will be no changes to the composition of Dimension Data's board of directors.

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