A subsidiary of Logicalis is acquiring Chilean information and communications technology services and solutions provider Coasin Chile for up to $20.2-million in cash, parent company JSE-listed Datatec said on Tuesday.
Logicalis, which expects to complete the deal in the third quarter of this year, will pay $19.1-million to current owners Sociedad De Ejecución De Proyectos De Ingeniería Datatel, Sociedad De Inversiones Tecnológicas and Inversiones Telco Chile upon completion of the acquisition.
A further $1.1-million will be paid based on Coasin achieving a stipulated profit target for the 12 months to June 30.
The acquisition, which will be settled in cash from Logicalis’ resources, remains subject to certain third-party consents, as well as approval by the Chilean competition authorities.
“The acquisition will bring significant capabilities and scale to Logicalis’ existing operations in Chile and Peru. Coasin’s experience in the mining and financial services verticals creates opportunities for Logicalis to better serve its multinational clients while broadening its services scope to new customer groups,” said Datatec CEO Jens Montanana.
Coasin, which was established in 1966, reported turnover of $84.4-million, profit after tax of $2.8-million and net assets of $12-million for the 12 months ended December 31, 2017.
“Coasin is one of the most established information technology businesses in the region and will be a game changer for our operations in Chile and Peru allowing us to further consolidate our very strong position regionally,” said Montanana.