SOUTH AFRICA – South African private equity firm Convergence Partners has announced that its Convergence Partners Digital Infrastructure Fund (CPDIF) has signed an agreement with Alviva Holdings to buy 100% of IT services group Datacentrix.
In a statement, Convergence Partners explained that the acquisition was made alongside the existing Datacentrix management team that led the company for over 20 years.
Following its delisting from the Johannesburg Stock Exchange (JSE) in early 2023, Alviva is exiting Datacentrix to focus on its core operations in hardware distribution.
“The transaction aligns with the CPDIF’s strategy of investing in high growth companies that are leading champions in their field with strong management teams and deep customer and vendor relationships,” the statement continued.
The transaction is expected to close in Q1 2024, subject to the customary regulatory approvals including approval by the Competition Authority of South Africa and the Independent Communications Authority of South Africa (ICASA).
“We are immensely proud to announce the acquisition of Datacentrix as part of our Convergence Partners Digital Infrastructure Fund,” Andile Ngcaba, Chairman of Convergence Partners, said.
“The Datacentrix team possesses exceptional skills and profound expertise in Managed Services and System Integration (SI). This acquisition marks a significant step for Convergence Partners as we endeavor to work alongside the Datacentrix team in building a leading SI business in South Africa and across the African continent.”
The transaction aligns with CPDIF’s strategy of investing in high-growth companies that are leading champions in their field with strong management teams and deep customer and vendor relationships.
According to research, the IT market in South Africa has proven resilient even during periods of economic downturn and is forecast to outpace the country’s GDP growth.
Convergence Partners believes Datacentrix is well poised to capture this growth. Datacentrix provides ICT integration services and solutions to blue chip corporates in South Africa, ensuring their success and sustainability in the digital age.
The company’s approach is to partner with its customers, equipping them with valuable insight and assisting them to align their ICT undertakings with their business strategy.
Datacentrix offers deeply specialized skills and is endorsed by the world’s foremost technology partners.
The company is recognised for its agility, in-depth industry knowledge, proven capability, and strong overall performance.
Datacentrix will continue to focus on expanding into technologies that delivers business value to its clients, including digital transformation solutions, hybrid solutions from edge to cloud that is informed by the customers data and workload requirements.
It will continue to operate independently as it has in the past and does not envisage any changes in operations or staff.
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