Convergence Partners gets regulatory approval to acquire Datacentrix

AFRICAN BUSINESS AND ECONOMYJuly 3, 2024 at 6:30 PM UTC

TLDR

Convergence Partners secured regulatory approval to acquire Datacentrix from Alviva Holdings.
The deal, announced in January 2024, involves acquiring 100% of Datacentrix.
This acquisition aligns with Convergence Partners' mission to promote digital inclusion in Africa.

Convergence Partners' bid to acquire Datacentrix has received regulatory approval from the Competition Commission and the Independent Communications Authority of South Africa (ICASA).

This deal, announced in January 2024 for an undisclosed amount, involves Convergence Partners acquiring 100% of Datacentrix from Alviva Holdings and was contingent on regulatory approvals.

The acquisition follows Convergence Partners' closing of its Convergence Partners Digital Infrastructure Fund (CPDIF) at $296 million in January 2023, aimed at promoting digital inclusion across Africa. The fund had its first close at $120 million in July 2021.

Key Takeaways

Despite economic challenges, the IT market in South Africa is anticipated to surpass the country's GDP growth with industry revenues expected to reach $7.12 billion this year, and Convergence views Datacentrix as well-positioned to capitalize on this growth. The latter is a prominent provider of ICT integration services, renowned for its agility, industry expertise, and proven capabilities. The acquisition aligns with Convergence’s strategy to invest in high-growth companies with strong management teams, particularly in the digital infrastructure and IT sectors. This move positions Convergence to leverage Datacentrix's capabilities and contribute to the ongoing development of the digital infrastructure landscape in South Africa.

Convergence Partners

Alviva Holdings

Datacentrix

JSE

ICT

Acquisition

South Africa

ICASA