Dimension Data has sold The Campus – its business and office park in Bryanston, Johannesburg – to an all-women empowerment consortium.
The sale is part of a BBBEE transaction that was concluded last month, which enables Dimension Data to achieve a 51% black ownership recognition status. This has significantly improved the company’s BBBEE score from a level 4 to a level 2 for 2019.
In April this year Dimension Data reported that its parent company, NTT Holdings, was evaluating opportunities to conclude an equity transaction to bolster its Broad-Based Black Economic Empowerment (BBBEE) rating for Dimension Data in South Africa.
Grant Bodley, chief executive officer of Dimension Data, said: “Dimension Data and NTT are committed to furthering our transformation journey and the pursuit of a sustainable South Africa. This is a significant accomplishment and we are extremely proud of our level 2 BBBEE rating. We look forward to growing our business further in South Africa.”
Dimension Data’s BBBEE transaction is two-fold:
- The sale of The Campus – this Bryanston based office park, built specifically for Dimension Data which has been its home since 2003 and owned by the company since 2006, has been sold to a black women-owned company which is part of the recently-established Identity Property Fund (managed by Identity Fund Managers, a division of Identity Partners). The sale of The Campus is part of a wider restructuring exercise to enable the company to focus on its core business. Dimension Data currently occupies less than 50% of The Campus.
- A 15% equity transaction through an Employee Share Option Plan (ESOP). Historically Dimension Data has had two successful BBBEE schemes. The first scheme came into effect in 2004 and vested in 2012 benefitting thousands of employees and broad-based groups and transferring a total of R1.26 billion to its beneficiaries. This was immediately followed by an ESOP scheme, which was concluded in 2017 and has been unwound and its beneficiaries were paid out at the end of August this year.
Dimension Data will continue to occupy The Campus, which remains its head office.
New Security Business
Dimension Data has also established a new security business – Dimension Data Security – to prioritise providing solutions to its clients that protect their businesses from noted threats.
Dimension Data Security unites all the security offerings previously managed by the other four Dimension Data brands into one business, as well as incorporating the multitude of leading security investments made by NTT globally.
“By combining all of the expertise across our businesses, investing in developing locally tailored solutions and leveraging the global expertise from our relationship with NTT, we’re building a business offering that truly sets us apart on the continent,” said Bodley.
Dimension Data Security will be led by Tony Walt, managing executive of security. “In our emerging market, security plays a critical role for any business,” he said.
“We’ve built Dimension Data Security to make sure we’re offering world-class solutions to our Pan-African and Middle Eastern clients, while making sure they suit the unique needs of our clients operating in these markets. Further to this, we have a deliberate plan to focus on local skills development specifically in the threat intelligence space.”
The business will be divided into four key practices. “All offerings will lead with our Consulting practice. Our Secure infrastructure practice will ensure all Dimension Data group offerings are secure by design, our Secure Access practice will focus on Access governance and our Secure Multi-cloud practice will focus on securing applications irrespective of where they reside,” said Walt.
Dimension Data Security will also incorporate the services of wholly-owned subsidiary, ContinuitySA, to its clients.
“This means that in addition to the standard cyber security offerings, Dimension Data Security will be able to provide services related to business continuity, disaster recovery, work area recovery and regulatory compliance in order to achieve overall organisational resilience for our clients,” Walt said.