Networking distributor Datatec has tripled its UK turnover following the #25 million acquisition of networking hybrid reseller/ distributor Logical Networks.
The South African-owned internet firm will merge its UK interests into Logical?s wholesale arm, Unity, creating a #46 million specialist networking wholesale division.
John Cavill, managing director of Logical Networks, said the reorganisation will take effect following the completion of management earnout in 20 months. He claimed there would be no redundancies as a result of the acquisition.
Cavill confirmed that the management team will stay on after the earnout. ?I find the prospect of a seat on the board of a major international public company immensely interesting,? he said.
Datatec will also rebadge all group user reseller business under the Logical Networks brand. Slough-based Logical?s networking reseller business generates an annual turnover of #19 million. Datatec?s combined business will generate #65 million in sales.
Cavill said the distributor would become a vehicle for Datatec?s European acquisition activities. ?We are looking for profitable, well run companies, not looking to fix companies in trouble.?
He revealed that Logical had entertained approaches from six leading international companies in recent months, but declined to name the potential bidders.
Cavill said Logical had opted for a trade sale to Datatec because it enabled the company to achieve its growth ambitions much faster than would have been possible through a public flotation.
Logical came under no pressure from 3i, a 30 per cent shareholder in the company, to achieve a quick exit route, according to Cavill.
Datatec said its enlarged presence in the UK meant it would now be able to deliver serious competition to market leaders Azlan and Ilion.
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