Datatec's E-Services Group Acquires e-integration and Services Companies in USA and Switzerland.
LONDON--(BUSINESS WIRE)--Aug. 15, 2000
Datatec, the rapidly expanding networking and e-services multinational, today stepped up its drive towards higher margin services revenues for its E-Services Group with acquisitions by its e-integration and services division, Logical, of US-based Puget Sound Puget Sound (py`jĕt), arm of the Pacific Ocean, NW Wash., connected with the Pacific by Juan de Fuca Strait, entered through the Admiralty Inlet and extending in two arms c. Systems (PSSG PSSG
Financial ratio defined as stock price divided by sales over sales growth. Often used in the valuation of Internet stocks. Related: PREG. ) and Switzerland-based Conexus Global Information ("CGI CGI
in full Common Gateway Interface.
Specification by which a Web server passes data between itself and an application program. Typically, a Web user will make a request of the Web server, which in turn passes the request to a CGI application program. ").
Logical CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Rikke Helms said: "Both acquisitions are in line with Logical's previously announced migration to a pure e-integration and services business."
Depending on earn out considerations, Datatec will pay an amount between US$27.9 million and US$52.5 million for 100% of the outstanding stock of PSSG, with a payment of US$26.4 million raised through the issue of shares in Datatec to international institutions payable on completion of the transaction. In the case of CGI, Datatec is paying an amount between Swiss Francs ("CHF CHF
In currencies, this is the abbreviation for the Swiss Franc.
The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ") 7.5 million already settled using internal cash resources and CHF15.0 million depending on earn out considerations.
PSSG is regarded as one of Northwest America's leading e-business solution providers, delivering end-to-end Web-based business solutions to both corporate and government customers. PSSG's skills range from custom application development and advanced database systems, to high-end interactive design, with the tools, expertise and methodologies required to create or adapt online technologies to provide fully customized e-business and m-business (mobile-business) solutions.
Hans Stoker, Founder and CEO of PSSG said: "I see the acquisition of PSSG by Logical as an endorsement of their e-business direction and look forward to leveraging off Logical's existing operations. The resulting exchange of intellectual properties and customer relationships will enable PSSG to broaden its coverage across the USA."
The acquisition of PSSG in Washington State provides Logical with a strategic foothold to leverage its existing US operations. PSSG is the third major E-Services Group acquisition that Datatec has made in the USA. It is strategically important in helping the company build Logical's position as a complete end-to-end e-business integration and services company in the large and rapidly growing US market. PSSG will be integrated under the Logical brand together with Datatec's other existing US investments in the e-business integration and services sector. The acquisition brings Logical's presence up to 410 staff in 32 offices across the USA and significantly opens up new opportunities in the markets of the Pacific Northwest and West Coast.
Helms said: "In addition to having complete end-to-end capability across the whole range of e-business solutions, PSSG has also invested in leading-edge technologies such as WAP (1) (Wireless Access Point) See access point.
(2) (Wireless Application Protocol) A standard for providing cellular phones, pagers and other handheld devices with secure access to e-mail and text-based Web pages. (Wireless Application Protocol) which puts it at the forefront of wireless Internet and m-commerce applications development and integration. Through acquiring PSSG we have a great opportunity to leverage this knowledge across our existing operations and further our goal of making Logical a major player in the US e-business solutions market."
CGI is a rapidly growing European e-business solutions consultancy and supplier of one-to-one Internet based marketing solutions and telecommunication service management solutions. With a background in the Electronic Data Interchange See EDI.
(application, communications) electronic data interchange - (EDI) The exchange of standardised document forms between computer systems for business use. EDI is part of electronic commerce. (EDI (Electronic Data Interchange) The electronic communication of business transactions, such as orders, confirmations and invoices, between organizations. Third parties provide EDI services that enable organizations with different equipment to connect. ) arena, CGI is now focused on electronic Customer Relationship Management (eCRM) applications and services, supporting customers in the retention and growth of their share of customer spending by providing solutions for intelligent relationship management.
CGI was also one of the first solution providers to implement BroadVision's software products (BroadVision is the market leader in the supply of one-to-one Internet based marketing products). In addition, CGI has strategic partnerships with SAS Institute SAS Institute Inc., headquartered in Cary, North Carolina, USA, has been a major producer of software since it was founded in 1976 by Anthony Barr, James Goodnight, John Sall and Jane Helwig. , Sun Microsystems Sun Microsystems, Inc. (NASDAQ: JAVA) is an American vendor of computers, computer components, computer software, and information-technology services, founded on 24 February 1982. and HP.
Under the Logical brand, the company will play a significant role in global strategy development and project implementation in the areas of one-to-one Internet based marketing and analytical applications development.
For CGI, its integration into a global e-integrator represents an important step forward in its international expansion plans.
Hans Oury, Managing Director of CGI said: "On the basis of our strong position in the one-to-one marketing business, we had a number of very attractive offers from large international concerns. In making our choice, it was important to us not only to become the Swiss subsidiary of a global concern, but also to be able to have a decisive influence on future strategy. Logical and CGI shared a common vision and the fact that our companies work well together has already been proved by several joint international projects in Europe and South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. ."
Helms is very optimistic about the potential opportunities resulting from both deals: "PSSG has built an excellent reputation as one of the USA's leading independent e-business solution providers and is a leader in wireless Internet and m-commerce solutions. CGI has become a major force in the European eCRM solutions market and is a leader in personalization and one-to-one marketing applications. These are critical core competencies that will help us build Logical into an international e-business integration and services company. We are very excited about the opportunities for higher margin services business that are expected to arise from these acquisitions."
Notes to editors
Continuation of Cautionary Announcement:
Further to the cautionary announcement dated 21 July 2000, shareholders are advised that negotiations are still in progress which, if successfully concluded, may have an effect on the price of the ordinary shares in Datatec. Accordingly, shareholders are advised to continue to exercise caution when dealing in their shares until such time as a further announcement is made.
For further information please contact:
Tel: +27 11 444 8313
Mobile: +27 82 892 8378
Director, Strategy and Marketing, Datatec SA
Tel: +27 11 2331002
Mobile: +27 82 331 8008
Marketing Communications Marketing communications (or marcom) are messages and related media used to communicate with a market. Those who practice advertising, branding, direct marketing, graphic design, marketing, packaging, promotion, publicity, sponsorship, public relations, sales, sales Director, Logical Worldwide
Tel: +44 1753 696699
Mobile: +44 468 825959
About Logical (www.logical.com)
Logical is the E-Integration and Services division of JSE-listed Datatec Ltd. (www.datatec-group.com). Driven from its London HQ, it has more than 2300 employees throughout operations in ten countries with further plans for international expansion well advanced. Logical focuses on complex, high value e-business services that facilitate the transformation of its customers' businesses from Old Economy models to Internet based e-business models. Logical's core offering is a set of methodologies and services that allow organizations to e-enable their businesses, while protecting their investment in existing systems, applications and databases. Logical's primary focus areas are e-business infrastructures, e-business solutions and e-outsourcing - all complementary, high-margin service offerings tailored specifically to the needs of the rapidly growing international market for e-services. Logical comprises the major part of an E-Services Group that Datatec intends to float on the London Stock Exchange London Stock Exchange
London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. in the second half of this year.
About Logical's USA Operations (www.us.logical.com)
The acquisition of PSSG brings Logical's US presence up to 410 staff in 32 offices across the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . PSSG will become Logical's US center of excellence for e-business and m-commerce solutions, complementing the company's e-infrastructure businesses operating out of Detroit and Chicago. Significantly, the acquisition of PSSG opens up new opportunities in the markets of the Pacific Northwest and West Coast of the USA and will provide an opportunity to leverage its e-business skills across all of Logical's existing US customer base. It will also allow Logical US to provide complete end-to-end e-business solutions embracing infrastructure, applications and managed services An umbrella term for third-party monitoring and maintaining of computers, networks and software. The actual equipment may be inhouse or at the third-party's facilities, but the "managed" implies an ongoing effort; for example, making sure the equipment is running at a certain quality operations.
About PSSG (www.pssg.com)
Founded in 1984, PSSG is a full-service e-business development organization. Operating from two locations in Washington State (Olympia, Bellevue (Seattle)) and one in Portland, Oregon, PSSG's skills range from custom application development and advanced database systems, to high-end interactive design, with the tools, expertise and methodologies required to create or adapt online technologies to provide fully customized e-business solutions. The company has developed core competencies in web-to-host legacy integration and also in wireless technology development in which the company has a broad experience of emerging wireless web technologies including WAP, HDML (Handheld Device Markup Language) A specialized version of HTML designed to enable wireless pagers, cellphones and other handheld devices to obtain information from Web pages. HDML was developed by Phone. , SIM Toolkit and GSM. PSSG's staff is composed of experienced N-Tier developers, with expertise in multiple client technologies (HTML HTML
in full HyperText Markup Language
PSSG currently employs 59 staff (of which 49 are technical specialists) and also contracts the services of experienced subcontractors as and when required. PSSG's clients include Voicestream, Versidata, Airtouch, Holland America and a number of Washington State government departments. PSSG competes with firms such as Andersen Consulting See Accenture. , Cambridge Technology Partners, FutureNext, IGate (formerly Mastech), Whittman-Hart, Sapient sa·pi·ent
Having great wisdom and discernment.
[Middle English, from Old French, from Latin sapi and IBM Global Services IBM Global Services is the world's largest business and technology services provider. It is the fastest growing part of IBM, with over 190,000 professionals serving customers in more than 160 countries. .
About CGI (www.cnx-global.ch)
Since it was founded in 1995, the company has concentrated on the booming e-commerce and e-business segment. Its range of services encompasses consultancy and planning in the following business areas:
-- Electronic Customer Relationship Management (eCRM), including consulting on e-business strategies and call center design and integration;
-- Telecommunication Service Management, including performance and utilization management, service level and quality management and customer behavior analysis.
CGI's project implementation skills include Personalized Internet Content and Transactions Management (WWW and WAP) skills as well as analytic applications development leveraging the latest technologies in Data Warehousing and Data Mining.
CGI focuses on the finance and telecommunications markets; customers include Bank Austria, Credit Suisse, Orange Communications, Swisscom and UBS UBS Union Bank of Switzerland
UBS United Bible Societies
UBS United Blood Services
UBS United Buying Service
UBS Used Bookstore
UBS University Business Services
UBS Universal Building Society (UK)
UBS Ulaanbaatar Broadcasting System . The company currently employs 26 staff of which 20 are technical specialists.