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Convergence Partners has announced that its Digital Infrastructure Fund has entered into a definitive agreement with Alviva Holdings Limited to acquire 100 percent of Datacentrix Group.
The acquisition is alongside the existing Datacentrix management team that has successfully led the company for over 20 years.
Alviva is exiting Datacentrix pursuant to its delisting from the JSE in early 2023, to focus on its core operations in hardware distribution. Terms of the transaction were not disclosed.
The transaction aligns with the CPDIF’s strategy of investing in high growth companies that are leading champions in their field with strong management teams and deep customer and vendor relationships.
According to research, the IT market in South Africa has proven resilient even during periods of economic downturn and is forecast to outpace the country’s GDP growth. Convergence Partners believes Datacentrix is well poised to capture this growth.
Datacentrix provides ICT integration services and solutions to blue chip corporates in South Africa, ensuring their success and sustainability into the digital age. The company’s approach is to partner with its customers, equipping them with valuable insight and assisting them to align their ICT undertakings with their business strategy.
It offers a deeply specialised skills and is endorsed by the world’s foremost technology partners. The company is recognised for its agility, in-depth industry knowledge, proven capability, and strong overall performance.
Datacentrix will continue to focus on expanding into technologies that delivers business value to its clients, including digital transformation solutions, hybrid solutions from edge to cloud that is informed by the customers data and workload requirements.
It will continue to operate independently as it has in the past and does not envisage any changes in operations or staff.
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“We are immensely proud to announce the acquisition of Datacentrix as part of our Convergence Partners Digital Infrastructure Fund (CPDIF). The Datacentrix team possesses exceptional skills and profound expertise in Managed Services and System Integration (SI). This acquisition marks a significant step for Convergence Partners as we endeavor to work alongside the Datacentrix team in building a leading SI business in South Africa and across the African continent,” said Ahmed Mahomed CEO of the Datacentrix group.
Our confidence in Datacentrix’s market leadership in Managed Services and System Integration is steadfast. The synergy between Datacentrix’s capabilities and Convergence Partners’ extensive experience in private equity, particularly through CPDIF, is poised to deliver unparalleled value to our clients across Sub-Saharan Africa, North Africa, and the Middle East.
Central to Datacentrix’s success is its people – from the staff to the leadership team, they represent the company’s most valuable asset. At Convergence Partners, we hold a deep appreciation for the talent and dedication of the Datacentrix team. It is through their collective expertise and commitment that we envision growing the business to new heights, furthering our impact in the digital infrastructure landscape.”commented Andile Ngcaba, Chairman of Convergence Partners.
The transaction is expected to close in Q1 2024, subject to the customary regulatory approvals including approval by the Competition Authority of South Africa and the Independent Communications Authority of South Africa (ICASA).