JSE-listed ICT group Datatec has announced that its subsidiary, Logicalis Group has signed an agreement to acquire 100% of the issued share capital of Coasin, a Chilean ICT services and solutions provider, which also has operations in Peru.
The acquisition, which is expected to close in the third quarter of 2018, is subject to certain third party consents as well as approval by the Chilean Competition Authorities, it said.
Established in 1966, Coasin is a provider of ICT support and managed services, networking, and POS solutions with a strong position in the mining and financial services verticals, Datatec said.
The group had annual turnover of $84.4 million, profit after tax of $2.8 million, and net assets of $12 million for the twelve months ended December 2017. The acquisition is expected to be earnings enhancing.
Logicalis will acquire Coasin from its current owners for a cash consideration of up to $20.2 million (R250 million), of which $19.1 million will be paid on completion of the acquisition, and the remaining $1.1 million will be paid based on Coasin achieving a profit target for the twelve months to 30 June 2018, it said.
The acquisition consideration will be settled in cash from Logicalis’ resources.
“The acquisition will bring significant capabilities and scale to Logicalis’ existing operations in Chile and Peru. Coasin’s experience in the mining and financial services verticals creates opportunities for Logicalis to better serve its multinational clients while broadening its services scope to new customer groups,” Datatec said.
“Coasin is one of the most established IT businesses in the region and will be a game changer for our operations in Chile and Peru allowing us to further consolidate our very strong position regionally. We are pleased to welcome the Coasin team to the Group,” said Datatec CEO, Jens Montanana.