Dimension Data had exploratory discussion with EOH, but NTT decision prevented possible deal

Dimension Data had exploratory discussions with EOH about a potential fit, but decisions by its parent company NTT prevented a possible deal.

MyBroadband received information from a well-placed source, who asked not to be named, that Dimension Data was looking at EOH as a potential acquisition target. This prompted former Dimension Data CEO, Grant Bodley, to meet with EOH.

This discussion seemed to have taken place as part of a plan by senior managers to buy Dimension Data’s Middle East and Africa operations from NTT and list it on the JSE.

At the time, NTT was merging its international technology businesses, including Dimension Data, under a new holding company to serve global clients better.

On 1 July 2019, all Dimension Data operations, excluding those in the Middle East and Africa, became part of NTT.

Industry players expected NTT to agree to the sale of Dimension Data’s Middle East and Africa operations. It did not happen.

In May 2021, NTT issued a statement saying it was increasing its commitment to the Middle East and Africa, where Dimension Data operates.

NTT CEO Abhijit Dubey said the decision to remain invested in Dimension Data was driven by their belief that the region is strategically important to their vision.

This announcement was followed by the resignation of many top Dimension Data executives, including co-founder Jeremy Ord, Bruce Watson, and Saki Missaikos. Grant Bodley resigned as Dimension Data CEO three months earlier, on 31 March 2021.

The decision by NTT to keep Dimension Data as a subsidiary also seemed to have torpedoed a potential deal with EOH.

EOH CEO Stephen van Coller confirmed that they had an exploratory discussion with Dimension Data when there was the possibility of the company splitting from NTT.

However, after NTT decided to hold on to Dimension Data, the discussions did not progress.

“We have not had any discussions since,” Van Coller told MyBroadband.

Dimension Data told MyBroadband “no discussions of this matter have taken place in the past, or at present”.

Now read: Exodus at Dimension Data

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Dimension Data had exploratory discussion with EOH, but NTT decision prevented possible deal