Alviva’s sale of Datacentrix gets green light

The Competition Commission has unconditionally approved Alviva’s proposed sale of Datacentrix to Convergence Partners.

“The Commission is of the view that the proposed transaction is unlikely to substantially lessen or prevent competition in any market,” it said.

“In addition, the proposed transaction does not raise public interest concerns.”

Convergence Partners announced in January that its Digital Infrastructure Fund (CPDIF) made a deal 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 stated.

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

Alviva is exiting Datacentrix following its delisting from the JSE in early 2023.

Alviva said this is 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.

“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.