- Convergence Partners, a pan-African private equity firm, has agreed with Alviva, an information and communications technology (ICT) company, to acquire the entire stake in Datacentrix, a South African integrated ICT solutions provider.
- Although the transaction's terms are undisclosed, the deal is expected to close in Q1 2024.
- Convergence Partners says it will work with Datacentrix's current management team, which has led the company for over 20 years, to complete the acquisition.
Convergence Partners states that Datacentrix will continue to operate independently and that neither staffing nor operations will change.
The transaction is consistent with Convergence Partners Digital Infrastructure Fund’s (CPDIF) investment strategy, which funds fast-growing businesses with capable management teams and established connections with vendors and customers.
Convergence expresses confidence that Datacentrix is well-positioned to seize opportunities in the resilient IT market, which has shown strength even during economic downturns and is expected to outperform the country's GDP growth of $808 billion as of 2023.
The equity firm reiterates its dedication to expanding into new technological fields that will enhance the operations of its clients. It involves providing hybrid solutions that span from edge to cloud and digital transformation solutions to satisfy client demands for data and workload.
The Chairman of Convergence Partners, Andile Ngcaba, asserts that the Middle East, North Africa, and sub-Saharan Africa will gain from the partnership between the two companies because the Datacentrix team possesses extraordinary skills and knowledge in Managed Services and System Integration.
"By joining forces with Convergence Partners, we will harness what has made us successful to date and leverage the wider capabilities of the group, including its reach into the rest of Africa," said Ahmed Mohamed, CEO of the Datacentrix Group.
Datacentrix, founded in 1998 and headquartered in Europe, the Middle East, and Africa, is an ICT solutions provider specialising in IT infrastructure supply, integration, support, and maintenance.
It offers ICT integration services and solutions to blue-chip corporations in South Africa. The company collaborates with its clients, providing them with valuable data and support to ensure their ICT initiatives are consistent with their overall business strategy.
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Datacentrix became a subsidiary of Alviva in February 2017, following the completion of the acquisition of Datacentrix's remaining shares.
After being listed on the Johannesburg Stock Exchange (JSE) main board for over 20 years, Datacentrix was delisted following its acquisition.
However, Convergence Partners says that Alviva is leaving Datacentrix to focus on its core hardware distribution business after being delisted from the JSE in early 2023.