Logicalis snaps up 2e2's overseas operations
Integrator pays €24m for Morse-branded units in Spain and Ireland, plus 2e2's Dutch and Channel Islands arms
Logicalis has stepped in to buy fallen rival 2e2's overseas subsidiaries and has also taken on 70 of its UK staff.
The integrator, which is owned by Johannesburg and London-listed IT group Datatec, is shelling out €24m (£20.7m) in cash for 2e2's subsidiaries in Spain, Ireland, the Channel Islands and the Netherlands.
The quartet of operations - which were unaffected by the collapse of 2e2's UK operations - boasts a combined turnover of about $150m and EBITDA profits of more than $8m.
CRN understands that Computacenter also took a look. But the IT services outfit was interested in only the Spanish and Irish operations, whereas the administrator wanted a "clean deal" for all four, sources indicted.
The subsidiaries in Spain – which focused on IBM – and Ireland – which focused on IBM, NetApp and HP – both traded under the name of Morse, which 2e2 acquired for £70m in 2010.
The Channel Islands business focused on HP and Xerox while the Netherlands operation is a provider of IT service management consulting services and solutions.
Datatec chief executive Jens Montanana said in a statement: "This acquisition of these four businesses immediately expands Logicalis' European footprint and enables us to improve our offering to Logicalis' multinational and Latin American clients.
"They also open service opportunities in new customer markets which can be developed across the Logicalis group. We are also pleased to welcome the new employees to the Group."
At the same time, Logicalis' UK operations have taken on certain business, together with about 70 employees, from the UK 2e2 firms currently in administration. It is as yet unclear whether or not this includes contracts Logicalis is already known to have picked up soon after 2e2 UK went into administration, including one with Marks & Spencer. In all, over 500 staff have transferred across to Logicalis, the VAR said.
Datatec said it will fund the European acquisitions through a combination of cash and a share issue.
Computacenter chief executive Mike Norris would not confirm that Computacenter was also at the negotiating table, but wished his competitor luck.
"This does not really change the competitive landscape," he said. "It is an interesting deal and someone had to do it and Logicalis have paid up, good luck to them. We are not going to compete with them as we do not operate in Spain, Ireland, the Netherlands or the Channel Islands."
Chad Griffin, joint administrator of 2e2 and senior managing director at FTI Consulting, said: "2e2's international businesses attracted a lot of buyer interest and traded strongly through a difficult period. We are pleased that we were able to reach a successful transaction for all four businesses with Logicalis."