Dimension Data Expands U.S. Presence as RE/COM Merges with Data Comm Systems; Global Dimension Data Brand Introduced to US Market.Business Editors/Hi-Tech Writers MOORESTOWN, N.J.--(BUSINESS WIRE)--March 24, 2000 Almost immediately following its November acquisition of RE/COM in the U.S., DIMENSION DATA HOLDINGS has announced another acquisition that will allow them to capture at least 15% of the networking market in the New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. region of 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. . This latest deal sees Dimension Data acquire Data Comm Systems (DCS (1) See also DSC. (2) Digital Cross-connect System) A network switching and grooming device used by telecom carriers. See digital cross-connect. ) Inc., a Boston-based network integration company with an annual turnover of $30-million, and further entrenches the Group's position as a global networking services provider. Dimension Data's 80% stake in DCS, costing $24-million, will be settled in cash. The remaining 20% will be retained by DCS management and the company's employee share option plan. DCS will immediately be integrated with Dimension Data's first US acquisition, RE/COM, and the new entity will soon be re-branded under the Dimension Data name. The integration process will be managed by Adrian Liddiard, Dimension Data's Group Business Development manager for the US. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Bruce Watson, Dimension Data's Executive Vice President, Communications, the deal is not anticipated to have a material impact on Group earnings in the current financial year. However, there is enormous growth potential in this market and he predicts revenue growth of over 50% for the combined US operation. In addition, driven by rapid implementation of the Dimension Data scalable online networking services model, he anticipates opportunities to enhance current operating margins. Watson points out that a key benefit of the acquisition is the negligible overlap between the customer bases of RE/COM and DCS. RE/COM is especially strong in the service provider and dot.com space, whereas DCS has strength in the educational, retail and high-tech manufacturing environments. The combined Dimension Data US will boast a staff complement of some 160 people, 60% of whom posses the critical technical skills required for providing high-end services. "The complementary strengths, skills and customer bases of RE/COM and DCS will give Dimension Data US instant access to a significant share of the network integration market in one of the fastest-growing regions of the US," Watson adds. "Of every $1 of the $40-billion currently spent on venture capital in the US, 22c is pumped into the New England region*. To put the size of the region in context, the value of the network market there is at least three times that of the entire network market in South Africa. "In addition, our presence in the region offers an ideal platform to gain market share in the lucrative New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of region, and from there to expand our service offering across the country," he explains. "DCS established its own operating center providing network services two years ago. This center offers the basic infrastructure we require to fast-track the implementation of Dimension Data's global services blueprint. "This will enable us to bring our high-end range of network services such as fault management, capacity planning, performance management and network audit capabilities to market within three months. "In conjunction with our operations in Europe and Asia, these developments in the US will also enable the Dimension Data Group to attain certification as a Cisco Global Services Partner - a move which will boost our standing with and open doors into multinational corporations seeking networking services," Watson concludes. Note to editors: The New England region in which Dimension Data US will operate incorporates Massachusetts, Vermont, New Hampshire New Hampshire, one of the New England states of the NE United States. It is bordered by Massachusetts (S), Vermont, with the Connecticut R. forming the boundary (W), the Canadian province of Quebec (NW), and Maine and a short strip of the Atlantic Ocean (E). , Rhode Island Rhode Island, island, United States Rhode Island, island, 15 mi (24 km) long and 5 mi (8 km) wide, S R.I., at the entrance to Narragansett Bay. It is the largest island in the state, with steep cliffs and excellent beaches. , Maine, Connecticut and upstate New York Upstate New York is the region of New York State north of the core of the New York metropolitan area. It has a population of 7,121,911 out of New York State's total 18,976,457. Were it an independent state, it would be ranked 13th by population. . Dimension Data Holdings Limited is a global Information technology integration corporation with a turnover of approximately US$1.5 billion and a market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. of US$10-billion. The Group, which has representation on five continents and operates out of 36 countries, has achieved a compound annual growth rate of 98% in turnover and 57% in headline earnings Headline Earnings A basis for measuring earnings per share implemented by the Institute of Investment Management and Research. This method accounts for all the profits and losses from operational, trading, and interest activities, that have been discontinued or acquired at any per share over the past five years. Future plans are to list 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. . www.didata.com The Group is focused on communications/ networking infrastructure and electronic commerce software applications, two of the highest growth sectors of the information economy. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion