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ON MONDAY a group of analysts and journalists met informally with the senior management of Dimension Data (DiData).
The occasion was the group's delisting on the Johannesburg and London stock exchanges following its last set of financials.
Chairperson and founder of the company Jeremy Ord explained why the new chapter DiData is entering is an exciting one, while CEO Brett Dawson provided details of the negotiations that led to the complete acquisition of the group by Japanese telecommunications giant NTT.
The sale of the group is a big deal and something South Africans should be proud of.
Not only was DiData one of many companies NTT could have acquired in the space, but it is also playing a vital role in the expansion of the Japanese group it now belongs to.
Ord explained that DiData is spearheading NTT's global expansion into new markets and business lines.
He also hinted at massive revenue growth for DiData in coming years - the kind of numbers that will frustrate investors who are no longer able to trade in the stock directly.
DiData has become a global force to be reckoned with in the IT space, operating in 47 countries. The faith displayed in it by NTT - which acquired the group outright, not merely taking a majority stake in it - speaks volumes of the skills and management that made DiData what it is today.
For over two decades since listing in 1987, the company has been a darling of the South African ICT sector.
The group has seen highs and lows, the latter hitting hardest during the dotcom bubble burst at the turn of the century.
It has come back from this, however, and is now superseding even the most optimistic projections of its short-term prospects.
It’s a pity too, the whole delisting thing. DiData has just posted a robust set of results for the year to end-September 2010.
Revenue grew 19.4% in reported currency and 9.9% in constant currency, with strong second-half recovery that pushed revenues up 11.3% for that part of the year.
Operating profit grew 8.2% in constant currency.
When the company reported its interim results earlier this year, it projected ambitious growth for the coming half-decade. It’s already beating those percentages.
If one evens out the overall performance of the group in the last decade, DiData showed growth about three times that of its market and this is set to continue in the short term. Looking beyond the next three to five years, however, Dawson and his team saw danger on the horizon - and this is part of the reason why DiData was open to the possibility of being acquired.
The process of incorporating the group into NTT is well under way, but the brand of Dimension Data and just about all of its operations are being kept intact.
Ord is pleased with the way the NTT acquisition has panned out. When we spoke at the time the deal was announced, he said that it would be “business as usual” for DiData for the foreseeable future.
The company’s board is not changing, save for one seat now reserved for NTT.
The brand remains intact and Dawson is adamant that NTT is doing things right by keeping DiData in its current form instead of assimilating it into the group and brand, which is what other telecoms companies have done with systems integrators they have acquired - to disastrous effect.
But Ord agreed that it is an emotional time. He started the business in 1983 with school friends Bruce Watson and Richard Came and has experienced it grow and evolve ever since.
Ord stepped down as CEO of the group in 2004, handing the reins to Dawson, but has remained highly active in its operations, specifically where new business ventures are involved.
He was also involved in the three-year negotiations with NTT, working through translators, he says.
We may not have seen the last of DiData traded as an entity, however.
Both Ord and Dawson hinted at the possibility of the group being re-listed by NTT in the future, if it manages to show sufficient growth.
Until then, we'll be watching with great interest.
- Fin24
The occasion was the group's delisting on the Johannesburg and London stock exchanges following its last set of financials.
Chairperson and founder of the company Jeremy Ord explained why the new chapter DiData is entering is an exciting one, while CEO Brett Dawson provided details of the negotiations that led to the complete acquisition of the group by Japanese telecommunications giant NTT.
The sale of the group is a big deal and something South Africans should be proud of.
Not only was DiData one of many companies NTT could have acquired in the space, but it is also playing a vital role in the expansion of the Japanese group it now belongs to.
Ord explained that DiData is spearheading NTT's global expansion into new markets and business lines.
He also hinted at massive revenue growth for DiData in coming years - the kind of numbers that will frustrate investors who are no longer able to trade in the stock directly.
DiData has become a global force to be reckoned with in the IT space, operating in 47 countries. The faith displayed in it by NTT - which acquired the group outright, not merely taking a majority stake in it - speaks volumes of the skills and management that made DiData what it is today.
For over two decades since listing in 1987, the company has been a darling of the South African ICT sector.
The group has seen highs and lows, the latter hitting hardest during the dotcom bubble burst at the turn of the century.
It has come back from this, however, and is now superseding even the most optimistic projections of its short-term prospects.
It’s a pity too, the whole delisting thing. DiData has just posted a robust set of results for the year to end-September 2010.
Revenue grew 19.4% in reported currency and 9.9% in constant currency, with strong second-half recovery that pushed revenues up 11.3% for that part of the year.
Operating profit grew 8.2% in constant currency.
When the company reported its interim results earlier this year, it projected ambitious growth for the coming half-decade. It’s already beating those percentages.
If one evens out the overall performance of the group in the last decade, DiData showed growth about three times that of its market and this is set to continue in the short term. Looking beyond the next three to five years, however, Dawson and his team saw danger on the horizon - and this is part of the reason why DiData was open to the possibility of being acquired.
The process of incorporating the group into NTT is well under way, but the brand of Dimension Data and just about all of its operations are being kept intact.
Ord is pleased with the way the NTT acquisition has panned out. When we spoke at the time the deal was announced, he said that it would be “business as usual” for DiData for the foreseeable future.
The company’s board is not changing, save for one seat now reserved for NTT.
The brand remains intact and Dawson is adamant that NTT is doing things right by keeping DiData in its current form instead of assimilating it into the group and brand, which is what other telecoms companies have done with systems integrators they have acquired - to disastrous effect.
But Ord agreed that it is an emotional time. He started the business in 1983 with school friends Bruce Watson and Richard Came and has experienced it grow and evolve ever since.
Ord stepped down as CEO of the group in 2004, handing the reins to Dawson, but has remained highly active in its operations, specifically where new business ventures are involved.
He was also involved in the three-year negotiations with NTT, working through translators, he says.
We may not have seen the last of DiData traded as an entity, however.
Both Ord and Dawson hinted at the possibility of the group being re-listed by NTT in the future, if it manages to show sufficient growth.
Until then, we'll be watching with great interest.
- Fin24
