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DATATEC LIMITED - Acquisition of European subsidiaries of 2e2 including Morse operations for Euro24m

Release Date: 04/03/2013 07:05
Code(s): DTC     PDF:  
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Acquisition of European subsidiaries of 2e2 including Morse operations for Euro24m

Datatec Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1994/005004/06)
ISIN: ZAE000017745
Share Code: DTC

Acquisition of European subsidiaries of 2e2 including Morse operations for Euro24m

Datatec Limited, (JSE/AIM: DTC, "Datatec" or the Group), the international Information and
Communications Technology (ICT) group, announces that its subsidiary Logicalis Group Limited (Logicalis)
has agreed to acquire the European subsidiaries of 2e2, excluding the UK business, for Euro24m ($31m) in
cash. The consideration will be funded by a combination of cash and the issue of Datatec shares.

Logicalis will acquire the business from the administrators of 2e2. In addition the UK operations of Logicalis
have taken on certain business, together with approximately 70 employees, from the UK 2e2 companies
currently in administration.

The four separate businesses being acquired are in Spain, Ireland, the Netherlands and the Channel Islands:

-	An IBM focused system integrator in Spain operating under the Morse trade name with a strong
	enterprise managed services focus;
-	An IBM, NetApp and HP focused provider of enterprise hardware & software solutions and services in
	the Republic of Ireland operating under the Morse trade name;
-	A HP and Xerox focused provider of managed services solutions in the Channel Islands; and
-	A provider of IT service management consulting services and solutions in the Netherlands.

Together these businesses achieved unaudited revenues of approximately $150m in the year ended 31
December 2012 with unaudited EBITDA of more than $8m. In total, over 500 employees from 2e2
operations will now be joining Logicalis.

Jens Montanana, Datatec's Chief Executive commented:

This acquisition of these four businesses immediately expands Logicalis European footprint
and enables us to improve our offering to Logicalis multi-national 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.

Enquiries:

Datatec Limited (www.datatec.co.za)
Jens Montanana, Chief Executive Officer                            +44 (0) 1753 797118
Rob Evans  Chief Financial Officer                                +27 (0) 11 233 1221
Wilna de Villiers  Group Marketing Manager                        +27 (0) 11 233 1013

Jefferies International Limited  Nominated Advisor and Broker
Nick Adams/Alex Collins                                            +44 (0) 20 7029 8000

finnCap  Broker
Tom Jenkins/Henrik Persson                                         +44 (0) 20 7220 0500

College Hill
Adrian Duffield/Rozi Morris (UK)                                   +44 (0) 20 7457 2020
Frederic Cornet/Lexi Ball (SA)                                     +27 (0) 11 447 3030

Sandton
4 March 2013

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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