Dimension Data plans further acquisition

Dimension Data plans to make another acquisition in the UK this year to bolster its ecommerce division.

Dimension Data plans to make another acquisition in the UK this year to bolster its ecommerce division.

The South African IT group, which is in the middle of restructuring before its planned flotation on the London Stock Exchange, also plans further consolidation among its UK subsidiaries.

In May, 73 people were made redundant when Dimension Data merged two companies within its UK networking division - Comparex Networks and Chernikeef.

Bruce Watson, managing director of Dimension Data Networking, said the long-term plan is to merge GK Communications, its remaining networking subsidiary, into Chernikeef after the flotation, which is planned for the third quarter of this year. Watson said fewer redundancies are expected because there is little overlap between the two operations. "The two companies operate in different markets," he said.

Watson added that Dimension is in discussions to acquire a UK ecommerce services company to grow its Interactive Commerce division. Although the deal would ideally be completed before the flotation, Watson said "in all likelihood" it will be finalised later. The only UK company currently within Dimension's Interactive Commerce division is call centre specialist The Merchants Group.

Dimension will introduce a single brand for its various companies, including Recom in the US, DataCraft Asia and Com Tech in Australia, but Watson said the Chernikeef name has such goodwill in the UK market that re-branding would be phased in.

First published in Computer Reseller News