17th March 2008
Logicalis merges with leading Brazilian Network Integrator to create the largest networking focused IT and Communications group across Latin America
Logicalis Group Limited (“Logicalis”), the international IT and Communications services provider, has agreed to merge the business of Promon Tecnologia (“PT”), a leading Brazilian network integrator, with Logicalis' existing operations across Latin America, to create a regional market leader with a presence in six countries.
Following the transaction, Logicalis will hold 70% of the shares of the enlarged holding company which will own all of the Latin America operations with Promon S.A., PT's parent, retaining the remaining 30% shareholding. In addition, Promon S.A. will become a shareholder of Datatec, the controlling shareholder of Logicalis, as part of the consideration payable will be settled through the issue of Datatec shares*.
The enlarged group will be the largest independent network integrator in Latin America with almost 500 employees and annualised revenues in excess of $250 million. The operations in Argentina, Urugua, Chile, Peru and Paraguay will trade under the Logicalis name whilst the Brazilian operation will be called PromonLogicalis and will be based at PT's existing offices in Sao Paulo and Rio de Janeiro.
The operating entities will be wholly owned by a company named PromonLogicalis Latin America. The focus of the new group will be to capture synergies across Latin America by providing cross-border solutions and services to customers in the region. The Board and management of PromonLogicalis Latin America will comprise directors and executives from both Promon S.A. and Logicalis.
PT is a leading Brazilian network integrator and Cisco's largest partner in Brazil. Its product offering encompasses Cisco's Advanced Technology offerings (Unified Communications, Security, and Wireless Solutions), with strong consulting and service offerings. PT enjoys a market leading position in the Brazilian Service Provider and Telco market, and will complement Logicalis' existing Latin American operation and commercial sector experience.
The deal marks an important step for Logicalis, to realise its plans to double revenues over the next three years, and to increase its geographical reach into the faster growing economies. Management has long believed that there is a significant market opportunity for an integrator to provide IT and Communication solutions throughout the Latin American market. The merger with PT provides the platform for further growth in the Latin American market and increases Logicalis' capability to service major multi-nationals that operate across the region.
With revenues in excess of US$1 billion and over 1,500 employees in UK, US, Germany and Latin America, Logicalis is fast establishing itself as one of the strongest IT and Communications service providers, specialising in the areas of advanced technologies and services. The Group's integrated services portfolio comprises the architecture, deployment, integration and management of customers' networks and systems to deliver optimum solutions that meet their business needs, backed up by a customer endorsed track record of technical excellence.
Logicalis Group has in excess of 6,500 customers including many of the world's leading companies and a large number of public sector organisations.
Ian Cook, Chief Executive of Logicalis Group, comments:
“This is a significant strategic development for Logicalis. It immediately positions us as not only the leading network integrator in Brazil but also across the whole of Latin America . Adding a substantial Latin American business to our operations also significantly increases our exposure to the faster growing economies outside of the US and Western Europe .
“We have secured a rarely available market leading business with a strong management team and culture of excellence and integrity. The operation has been consistently voted as one of the best employers in Brazil over the last decade. The business has unrivalled technical skills in advanced technologies and first class project management and support capabilities.
“Significantly, this merger also gives both Logicalis and PT access to new skills and market sectors allowing both organisations to target new customer verticals and offer new solutions across the continent.”
*Note to Editors
Full financial details of the merger have been published by Datatec Limited – see www.datatec.co.za
About Us
Logicalis is an international provider of integrated Information and Communications technology (ICT) solutions, delivering secure, converged computing and communications infrastructure and services. Logicalis maintains strong partnerships with technology leaders including Cisco, HP and IBM.
With its international headquarters in the UK, Logicalis Group employs over 1,500 people worldwide, including highly-trained service specialists who specify, design, deploy and manage IT infrastructure to meet the needs of over 6,500 corporate and public sector customers.
The Logicalis Group has annualised revenues in excess of $1 billion, from operations in the UK, US, Germany and Latin America and is fast establishing itself as one of the leading IT and Communications service providers, specialising in the areas of advanced technologies and services.
The Logicalis Group is a division of Datatec Limited, a $3.2 billion revenue business listed on the Johannesburg and London AIM Stock Exchanges.
For more information, visit www.logicalis.com.
About Promon Tecnologia
Promon Tecnologia is the Promon Group company positioned as an integrator for information and communication technology (ICT) solutions. Last year it reported sales of US$160 million, accounting for roughly 50% of group revenue. Promon Tecnologia is one of the leading Brazilian systems integrators in the telecommunications and information technology sectors. In over three decades of operations, Promon has delivered projects to practically all Brazilian telecommunications carriers and many major corporations. Its achievements derive from the capacity to make innovative use of technology and systems engineering, cutting-edge technological alliances and acknowledged competencies in project management, all of which make impeccable execution one of its key competitive advantages.
In telecommunications, Promon supports landline, mobile and cable companies across the entire operating chain, as well as meeting the technological needs of large corporations, offering services that encompass all stages of a project from planning, conception and implementation of solutions to operation and maintenance of the infrastructure implemented. In information technology, Promon assists clients with the integration of multiple systems and platforms, and with the development of custom software for applications of all types including operational and business support systems (OSS/BSS), information security, and storage.
Besides Promon Tecnologia, the Promon Group comprises Promon Engenharia, a wholly-owned subsidiary, and Trópico Sistemas e Telecomunicações S.A., a joint venture with Fundação CPqD and Cisco Systems. The group also includes Fundação Promon de Previdência Social (the oldest pension fund associated with a private-sector company in activity in Brazil), Instituto de Tecnologia Promon, and Instituto Razão Social, maintained in association with Instituto Camargo Corrêa and Gerdau.
Founded in 1960, Promon is a Brazilian organisation owned entirely by its employees. It is identified consistently as one of the best companies to work for in Brazil for the last 11 years according to the Great Places to Work Institute and was awarded in 2007 the Brazilian Quality Award in recognition to its world-class management practices.
Promon's core business is the design, integration and implementation of complex infrastructure solutions for key sectors of the economy including power, oil & gas, process industries, chemical, petrochemicals, mining, metallurgy, telecommunications, and information technology.