Didata to be sold

Johannesburg - Shares in IT firm Dimension Data Holdings [JSE:DDT] rocketed over 20% in early trade on the JSE on Thursday, after the company announced that Nippon Telegraph and Telephone Corporation (NTT), one of the largest global telecommunications service providers, has made a R24.2bn cash offer to acquire the company.

Didata was trading at 1 392c per share by 10:55 on Thursday, up from 1 157c on Wednesday.

NTT has received irrevocable undertakings to accept, procure the acceptance of or recommend the offer from the Didata Directors, Venfin Holdings and Allan Gray in respect of, collectively, about 52% of Dimension Data's issued shares.

The offer price for each ordinary share is expected to be 120 pence.

The deal has also been unanimously recommended by both boards of directors.

Didata CEO Brett Dawson said the company would retain its identity and continue to operate from South Africa.

Commenting on the acquisition, NTT president and CEO Satoshi Miura said: "By leveraging the complementary strengths of both companies, we are confident that we will provide end-to-end, global one-stop and high quality ICT services.

"Dimension Data and NTT share the common vision to create new services and values to succeed in the coming age of cloud computing."
  
Dawson said: "NTT recognises the value of Dimension Data's entrepreneurial culture and business model; our operational processes, brands, and methodologies will all remain. NTT provides a world class IT and communications platform globally, while Dimension Data brings expertise and capabilities in specialist managed IT infrastructure and services."

NTT said the integration between NTT and Didata will create a substantially expanded global business for corporate users. The strengths of NTT and Didata complement each other in a fitting way.

Once the deal goes ahead, Dimension Data intends to cancel its listings on the London Stock Exchange and the JSE.

 - I-Net Bridge