South African giant Dimension Data last week bought Comparex's European networking operations as a springboard to grab a bigger slice of the UK and European networking services market. The networking vendor spent R8.1bn (£810m) in shares on Comparex's European networking business last week, but the transaction comes into effect only on 1 February. Dimension Data will use the acquisition to roll out customer options which it hopes will almost double its services revenue and claimed the deal makes it the largest independent networking services company in the world. The acquisition is the company's first foray into Europe since it bought a 49.9 per cent stake in Chernikeeff in July. Karen Cramer, Dimension Data's investor relations manager, said the company is determined to decrease the operations' dependency on product sales, which currently account for 82 per cent of revenue. She said Dimension Data will roll out a services model that has proved successful in Africa and Asia and predicted it will increase services revenue from 18 per cent to 30 per cent over 18 months. Cramer said Comparex's European management will not be changed but it is discussing the rebranding of Comparex's offerings. Under the terms of the agreement, Dimension Data will continue using Comparex's brand name for the next six months. Keith Humphries, analyst at EuroLan Research, said: "The acquisition is amazing. Ripples will be felt all over Europe. This must now be the largest networking integrator in the world." Jeremy Ord, Dimension Data managing director, said the merger will provide an "excellent platform to market our complementary e-commerce solutions in Europe". "The deal will effectively enable Dimension Data to compete in 48 per cent of the global networking services market, compared with the 22 per cent represented by the territories in which the group currently operates." Roux Marnitz, chairman of Comparex, said the group will refocus its strategy around "attractive global opportunities".
Cotton seedling freezes to death as Chang'e-4 shuts down for the Moon's 14-day lunar night
Fortnite easily out-earns PUBG, Assassin's Creed Odyssey and Red Dead Redemption 2 in 2018
Meteor showers as a service will be visible for about 100 kilometres in all directions
Saturn's rings only formed in the past 100 million years, suggests analysis of Cassini space probe data
New findings contradict conventional belief that Saturn's rings were formed along with the planet about 4.5 billion years ago