Alviva selling Datacentrix

Convergence Partners has announced that its Digital Infrastructure Fund (CPDIF) has entered into a definitive agreement with Alviva Holdings to acquire 100% of the Datacentrix Group.

The 25-year-old Datacentrix provides ICT integration services and solutions to blue chip corporates in South Africa.

“Datacentrix offers deeply specialised skills and is endorsed by the world’s foremost technology partners,” Convergence Partners said.

“The company is recognised for its agility, in-depth industry knowledge, proven capability, and strong overall performance.”

Alviva is exiting Datacentrix following Alviva’s delisting from the JSE in early 2023, to focus on its core operations in hardware distribution.

Convergence Partners believes Datacentrix is well poised to capture growth in the IT market, which has proven resilient during periods of economic downturn and is forecasted to outpace the country’s GDP growth.

“The transaction aligns with the CPDIF’s strategy of investing in high-growth companies that are leading champions in their field with strong management teams and deep customer and vendor relationships,” Convergence Partners stated.

The company’s focus will remain on expanding into technologies that delivers business value to its clients, including digital transformation solutions, hybrid solutions from edge to cloud that is informed by the customers data and workload requirements, Convergence Partners said.

“It will continue to operate independently as it has in the past and does not envisage any changes in operations or staff,” Convergence Partners said.

The terms of the transaction were not disclosed, but Convergence Partners said the acquisition was “alongside” the existing Datacentrix management team that had successfully led the company for over 20 years.

Convergence Partners chairman Andile Ngcaba said the Datacentrix team possessed exceptional skills and profound expertise in Managed Services and System Integration.

“The synergy between Datacentrix’s capabilities and Convergence Partners’ extensive experience in private equity, particularly through CPDIF, is poised to deliver unparalleled value to our clients across Sub-Saharan Africa, North Africa, and the Middle East, “Ngcaba stated.

Datacentrix group CEO Ahmed Mohamed said he was excited with the developments as the entities shared a common value system, culture, vision, and approach.

“By joining forces with Convergence Partners, we will harness what has made us successful to date and leverage the wider capabilities of the group including its reach into the rest of Africa.

The transaction is expected to close in the first quarter of 2024, subject to the customary regulatory approvals including approval by South Africa’s competition authorities and the Independent Communications Authority of South Africa.