International technology company Datatec has agreed to sell its shares in the wholly owned Analysys Mason business arm to Bridgeton Development Capital (BDC) according to sources in the know of the transaction. The deal which is said to be worth as much as £210-million (R4.1-billion) is expected to put the JSE-listed conglomerate in good stead to focus on other core businesses such as Westcon International, Logicalis and other brands.
“BDC, through Aramis Bidco, a new company incorporated for the purposes of the transaction, will acquire all of the issued shares in Analysys Mason at an enterprise value of £210-million,” Datatec said in a notice to shareholders on Thursday.
Analysys Mason has developed significantly with Datatec’s support over the past 20 years
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Proceeds from the deal will be returned to Datatec shareholders and the sale is in line with the group’s strategic review process, it said. The deal is subject to approval by Datatec’s shareholders.
“Analysys Mason has developed significantly with Datatec’s support over the past 20 years to become one of the world’s leading telecommunications, media and technology management consultancies with an enviable track record,” Datatec CEO Jens Montanana said in a statement.
“We believe that the time is right to realise our investment now as part of our strategic review process and we see Bridgepoint Development Capital as the ideal partners to take the business forward on its next growth phase, supported by significant reinvestment from management and employee shareholders,” Montanana said.
“Datatec’s share of the proposed maximum transaction value, equating to approximately 38% of Datatec’s current market capitalization, represents a great value realization opportunity for shareholders.”
Strategic decision
Part of Bridgepoint, an international alternative private assets management group with assets under management of more than €33-billion, BDC invests in mid-cap companies in the UK, France and the Nordics. It works actively to develop successful businesses undertaking growth and expansion, with enterprise values typically up to £250-million, Datatec said. “It is currently investing in its fourth fund, the £1.5-billion BDC IV.”
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Datatec disclosed to investors in May that it was in talks about a “potential transaction” involving Analysys Mason, but didn’t provide additional details at the time.
In the year to end-February 2022, Analysys Mason’s revenue jumped by 23.5% to US$90.4-million, while earnings before interest, tax, depreciation and amortisation increased by 8.8% to $11.1-million.
The planned sale of Analysys Mason comes after Datatec engaged Lazard & Co in 2021 to assist it with a “comprehensive evaluation of strategic options and initiatives to unlock and maximise shareholder value”.
In the year to end-February 2022, Analysys Mason’s revenue jumped by 23.5% to $90.4-million
In an interview with TechCentral last September, Datatec CEO Jens Montanana outlined the group’s strategic decision to find ways actively of unlocking shareholder value after its share price did not receive the sort of rerating in value enjoyed by its international peers.
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At the time, Montanana said Datatec was considering several options, including subsidiary listings and possible asset sales, to address the valuation problem.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry