Pinnacle Technology says it has entered into an agreement with Co-ordinated Network Investments and Hoolican Investments to acquire 29.79% of the issued ordinary share capital of listed ICT company, Datacentrix.
This represents 61,152,467 ordinary shares in Datacentrix in an off-market sale and purchase.
Datacentrix is a recognised services-led ICT solution integrator in South Africa, focusing on the provision of managed services and business solutions.
The purchase consideration for the acquired shares is 388 cents per share totalling R237.27 million.
By way of rationale for the transaction, Pinnacle said it recognises the strength of Datacentrix´s operations in its chosen fields.
“The Acquisition will provide Pinnacle the opportunity to grow its own revenue generation from the Managed Services and Business Solutions market sector within the ICT industry.”
Pinnacle added: “This is consistent with Pinnacle´s strategy to secure a greater share of the value-add service provision segment in the ICT value chain, and to benefit from the annuity revenues and higher margins associated with this segment of the market.
The group said that the purchase consideration will be funded out of existing cash resources and credit facilities available to Pinnacle.