Datatec gears up to buy UK`s Analysys
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Information Technology Editor
DATATEC has created a new subsidiary to conduct a £12,8m purchase of UK consultancy Analysys .
The UK-based unit, Analysys Mason Group (AMG), will buy all the issued shares of Analysys and take control of Datatec`s Mason Group subsidiary.
Analysys is a telecommunications consulting firm with global clients including regulators, governments, network operators, equipment manufacturers and financial institutions. It generated revenue of £13m in the past financial year, and has branches in several European cities, San Francisco and Washington DC.
Mason is also a telecommunications consultancy, and in the financial year to February 2004 generated revenue of 27,4m. That returned an operating loss of $1,4m, which Datatec directors said resulted from increased competition .
The new AMG group will have revenue of £29m, with 300 employees in five countries.
Datatec is funding the deal by using some of the 66m that it raised by selling businesses in Australia and New Zealand this year. The managers of Analysys and Mason will be offered 15% of AMG, with the ability to raise their stake to 24% in time.
In the short term, Analysys and Mason would continue to operate as independent businesses that would combine their resources on a contract-by-contract basis, Datatec said. The businesses would share central infrastructure services and would both gain greater critical mass, more skills, a broader geographic reach and access to more clients.
Datatec set up its international arm in February , to give it freedom to raise funds and conduct offshore expansion without SA`s forex restrictions.
Aug 11 2004 07:09:48:000AM Lesley Stones Business Day 1st Edition
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