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IBM bid drives Datatec to sells units

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CIOL Bureau
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JOHANNESBURG: Johannesburg-listed technology group Datatec said that it was selling its Logicalis business in Australia and New Zealand for $66 million after an unsolicited bid from IBM in those countries.



"The board is of the opinion that the disposal will enhance shareholder value. The total consideration represents a significant premium to the historical investment costs," Datatec said, adding that it had not previously intended to sell the business.

Logicalis, which integrates IT infrastructure, employs over 300 staff in the two countries.



Of the $66 million payment, $46 million is cash and the rest is the repayment of loans.



"The proceeds will be used to strengthen the balance sheet of the group and for potential acquisitions," Datatec said.



© Reuters

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