Convergence to acquire Datacentrix from Alviva

17th January 2024 By: Schalk Burger - Creamer Media Senior Deputy Editor

Convergence to acquire Datacentrix from Alviva

Datacentrix CEO Ahmed Mahomed
Photo by: Creamer Media

Private equity investment management company Convergence Partners, through its Convergence Partners Digital Infrastructure Fund (CPDIF), has entered into a definitive agreement with information and communications technology (ICT) company Alviva to acquire 100% of ICT integration company Datacentrix Group.

Datacentrix's management team, which has successfully led the company for over 20 years, will continue to lead the company.

Alviva's decision to sell its shareholding in Datacentrix follows the delisting of Datacentrix from the JSE in early 2023 to focus on its core operations in hardware distribution.

The terms of the transaction were not disclosed. However, the transaction is expected to close in the first quarter of this year and is subject to customary regulatory approvals including approval by the Competition Commission and the Independent Communications Authority of South Africa.

“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,” Convergence Partners says.

The ICT market in South Africa has proven resilient even during periods of economic downturn and is forecast to outpace the country’s gross domestic product 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.

Datacentrix offers "deeply specialised" skills and is endorsed by the world’s foremost technology partners. It is recognised for its agility, in-depth industry knowledge, proven capability and strong overall performance, Convergence Partners says.

“Datacentrix will continue to focus on expanding into technologies that deliver business value to its clients, including digital transformation solutions, hybrid solutions from edge to cloud that are informed by the customer's 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, the company said.

“We are excited about the future as we start a new chapter in Datacentrix's 25-year history as a highly successful business that is well respected in the market. By joining forces with Convergence Partners, we will harness what has made us successful to date and leverage the wider capabilities of the group including its reach into the rest of Africa,” says Datacentrix Group CEO Ahmed Mahomed.

Further, Convergence Partners says the Datacentrix team possesses exceptional skills and profound expertise in managed services and system integration.

“This acquisition marks a significant step for Convergence Partners as we endeavor to work alongside the Datacentrix team in building a leading system integration business in South Africa and across the African continent,” it adds.

The company is confident in Datacentrix's market leadership in managed services and system integration. There is also synergy between Datacentrix's capabilities and Convergence Partners' extensive experience in private equity, particularly through CPDIF, which is poised to deliver value to its clients across sub-Saharan Africa, North Africa and the Middle East.

“Central to Datacentrix's success are its people, including the employees and the leadership team. They represent the company's most valuable asset,” says Convergence Partners chairperson Andile Ngcaba.

“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,” he comments.