Datatec boost for UK firms
After floating on London’s Alternative Investment Market (AIM) last week, Jens Montanana, Datatec’s chief executive, told CRN the firm will move forward as “a pro-active consolidator in a fragmented market”. As part of the listing, shares were offered at 192p per share, raising £13.9m before expenses.
“We want acquisitions on both the Logicalis and the Westcon sides,” Montanana said. “With Logicalis, we want to improve our IT services mix.
“With Westcon, we will make acquisitions to expand our geographical footprint. These will probably be outside the UK. However, we may look to get a UK firm in a sector such as security or storage.”
When asked when the next acquisition will be made, Montanana said: “[The channel] will hear more from us this year. We have two or three things on the go in the UK.”
George O’Connor, technology analyst at investment analyst firm Shore Capital, said: “Datatec’s stock could appear risky to investors. It has come to the market at a difficult time as investors are unsure about the channel environment.”
O’Connor added that technology and channel firms that have listed recently have not been particularly strong performers.
“Datatec does have scale, which is very important on the distribution side,” he said. “It is also important because end-users are becoming more picky and often want to work with larger channel firms.
“Datatec is an international business, so it was always going to list in either the US or London, but the costs are lower in London.”
>> Further reading:
The deal builds on distie's earlier promise to distribute a broader range of electrical goods
Services firm sees revenue increase 23 per cent
Execs Zak Virdi and Neil Lomax open up on the rationale behind acquisition
CEO Steve Brazier slams vendor titans at annual event in Barcelona