Shares digital

A second investment in Brazil in four months is Datatec’s (DTC:AIM) latest step in the international communications and technology group’s strategy to expand its geographic reach.

Datatec’s Logicalis arm, which is a value-added reseller focused on the networking equipment and server markets, is to merge its Latin American operations with the network integration businesses of Brazil’s Promon Tecnologia (PT). Logicalis will pay PT a maximum of $77 million in cash and stock in the deal for a 70% stake in the new venture.

This deal follows a $5 million investment in Brazil by Datatec’s distribution arm, Westcon, last December and supplements 2007’s quartet of acquisitions spanning the US, Europe and Africa and the Middle East. The shares in South Africa domiciled Datatec, which completed a secondary listing on Aim at 192p in October 2006, held firm at 181.75p, well below their 12-month high of 310.75p.

Shares says: January’s trading update was reassuring after September’s more downbeat outlook.

by: Russ Mould