Datatec shares climb after it announces South American deal
Datatec’s share price jumped as much as 10% to R21 on Tuesday morning after it announced a $20.2m acquisition in South America.
Datatec said it was acquiring Coasin, a company that was established in 1966 and supplied computer services to the mining and financial industries in Chile and Peru.
The acquisition is being made via Datatec’s subsidiary Logicalis. It will pay $19.1m cash upfront, with the remaining $1.1m dependant on Coasin achieving profit targets.
"Coasin is one of the most established information technology businesses in the region and will be a game-changer for our operations in Chile and Peru, allowing us to further consolidate our very strong position regionally," Datatec CEO Jens Montanana said in the announcement.
Coasin had annual turnover of $84.4m, profit after tax of $2.8m and net assets of $12m for the year to end-December, Datatec said.