Convergence Partners, a private equity firm, has purchased Datacentrix, a South African company specializing in IT network management and data center operations. The firm anticipates an increase in demand for such services across Africa.
This acquisition, the largest by the firm so far, marks the sixth in the last year and is part of the accelerated deployment of its $300 million tech-focused fund for Africa, according to Convergence Chairman Andile Ngcaba. The financial details of the purchase were not disclosed.
Datacentrix will continue to operate independently with no changes in staff or operations, according to private equity firm, Convergence Partners. The acquisition aligns with the investment strategy of Convergence Partners Digital Infrastructure Fund (CPDIF), which supports rapidly expanding firms with competent management and established vendor and customer relations.
Convergence believes that Datacentrix is primed to leverage opportunities in the robust IT market, a sector which has demonstrated resilience in economic downturns and is projected to surpass the country’s 2023 GDP growth of $808 billion.
The equity firm reiterated its commitment to venture into emerging technological arenas aimed at augmenting the operations of its clientele. This includes the provision of hybrid solutions ranging from edge to cloud and digital transformation solutions to meet the increasing client demands for data and workload management.
Andile Ngcaba, Chairman of Convergence Partners, believes that the combination of Datacentrix and Convergence Partners will benefit the Middle East, North Africa, and Sub-Saharan Africa due to Datacentrix’s exceptional skills and expertise in Managed Services and System Integration.
Datacentrix Group’s CEO, Ahmed Mohamed, stated, “By collaborating with Convergence Partners, we can build on our past successes and take advantage of the group’s broader capabilities, including its reach across Africa.”
Datacentrix is an ICT solutions provider, specialising in the supply, integration, support, and maintenance of IT infrastructure. Founded in 1998, the company is headquartered in Europe, the Middle East, and Africa.
Datacentrix provides ICT integration services and solutions to leading corporations in South Africa, working closely with clients to align their ICT initiatives with their overall business objectives.
Following the complete acquisition of Datacentrix’s remaining shares in February 2017, the company became a subsidiary of Alviva. After over 20 years on the Johannesburg Stock Exchange (JSE) main board, Datacentrix was delisted following the acquisition.
Convergence Partners stated that after early 2023 delisting from the JSE, Alviva is now refocusing on its core hardware distribution business and spinning off Datacentrix.
