Pinnacle Technology says it has entered\u00a0into 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.<\/p>\n
This represents 61,152,467 ordinary shares in Datacentrix in an off-market sale and purchase.<\/p>\n
Datacentrix is a recognised services-led ICT solution integrator in South Africa, focusing on the provision of managed services and business solutions.<\/p>\n
The purchase consideration for the acquired shares is 388 cents per share totalling R237.27 million.<\/p>\n
By way of rationale for the transaction, Pinnacle said it recognises the strength of Datacentrix\u00b4s operations in its chosen fields.<\/p>\n
\u201cThe 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.\u201d<\/p>\n
Pinnacle added: \u201cThis is consistent with Pinnacle\u00b4s 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.<\/p>\n
The group said that the purchase consideration will be funded out of existing cash resources and credit facilities available to Pinnacle.<\/p>\n
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