Datatec to fork out $20.8m for Chilean ICT firm
Johannesburg – Multinational ICT group Datatec’s [JSE:DTC] Logicalis plans to acquire Chilean ICT services and solutions provider, Coasin Chile SA, for up to US$20.8m in cash.
On Tuesday, Datatec announced that a subsidiary of Logicalis Group had signed an agreement to acquire 100% of Coasin Chile, which also has operations in Peru. The acquisition is expected to close in the third quarter of 2018.
It is, however, subject to certain third party consents, as well as approval by the Chilean Competition Authorities.
The company will pay $19.1m (approximately R241m) upon completion of the acquisition, while the remainder of $1.1m (approximately R13.88m) will be paid out based on Coasin achieving a stipulated profit target for the 12 months to June 30 2018.
Datatec reported H1 2018 revenues of $1.8bn (approximately R22.7bn), a decline from the $2bn reported in H1 2017. At the end of December 2017, Coasin recorded increases in both turnover and profit after tax for the previous 12 months, with an annual turnover of $84.4m, profit of $2.8m, and net assets of $12m.
Datatec said the acquisition was expected to enhance its earnings.
The group has multiple subsidiaries falling within three main operating areas. Subsidiaries include Logicalis, Westcon-Comstor, and Analysys Mason Limited.
Group CEO Jens Montanana said: “Coasin is one of the most established IT businesses in the region and will be a game changer for our operations in Chile and Peru, allowing us to further consolidate our very strong position regionally.”
Company shares were 5.97% firmer on the JSE by 15:42 on Tuesday, trading at R20.22 per share.* SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.