Dimension Data looking for a buyer for Internet Solutions – report
IT services company Dimension Data has gone to market to find a buyer for Internet Solutions, according to a report by MyBroadband, citing industry sources.
Internet Solutions is owned by Dimension Data, which is owned by Japan’s Nippon Telegraph and Telephone Corporation (NTT).
In recent years, the company has strengthened its presence in the consumer and SMME market through its acquisition of MWEB Business and MWEB Connect; however, toward the end of 2016, it also underwent a “rationalisation process across all business units” – which included a reduction in staff, MyBroadband said.
It said that a more streamlined business has made it a more attractive asset to larger telecoms operators looking to grow their market share in the ISP space.
“Industry sources said that several prominent local telecoms companies have been in discussions with Dimension Data regarding the sale of Internet Solutions.
“They highlighted that this is not the first time the company has come onto the market, however, and that a sale is not guaranteed,” MyBroadband said.
The news follows a report that NTT is looking to sell Dimension Data’s African operations, which may then be listed as a separate company on the London Stock Exchange.
According to Bloomberg, one scenario would be that MTN buys Internet Solutions to strengthen its position in the corporate market.
Dimension Data told MyBroadband that it “does not respond to market rumours”.
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