Feeds

Datatec continues its UK buy-up bender

More Rands flow into the channel

  • alert
  • submit to reddit

Intelligent flash storage arrays

South African distributor Datatec is to splash out as much as £41 million on networking reseller Satelcom, continuing its UK shopping spree. Datatec will make an initial payment of £14 million, with the balance depending on Satelcom’s pre-tax profit performance for 1998-2000. Satelcom founders Brian Jacobs and Ian George each stand to pocket up to £16 million from their 40 per cent stakes. Around two-thirds of the 115 staff at the firm - based in Ascot, Berkshire - own shares worth around £8 million. The acquisition will provide big customers through Satelcom’s managed network services offering. Its clients currently include Marks & Spencer and Bank of Scotland. It also adds to Datatec’s existing cache of UK companies, including Logical, Blueprint and Network SI. Satelcom specialises in high end network management which keeps tabs on networks from Satelcom’s head office. It will be renamed Logical Network Services. Jon Davies, Datatec corporate marketing director, said: "The four businesses in the UK will together complete the end-to-end support programme. We can install, manage and now run networks for corporate customers." Davies added that Datatec wanted to copy the UK model throughout Europe, especially in France, Germany, the Benelux countries, Scandinavia and Switzerland. The acquisitions precede a possible floatation on the London Stock Exchange or on Nasdaq. Over 75 per cent of Datatec’s business now comes from outside South Africa. The company therefore needs to attract international investment, and thinks a listing in the UK or US will be more attractive to investors. Datatec floated in Johannesburg in 1994, and has a market value of £750 million. Europe is responsible for around 40 per cent of the revenue. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.