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MW Transaction Analysis
Dimension Data Acquires Nexus IS
Financial Overview
- Dimension Data, a South African ICT solutions and services provider, announced today that they were acquiring California-based IT solutions provider Nexus IS.
- The deal will expand Dimension Data's U.S. presence by 40%, particularly in the West, Southwest and Southeast regions of the country.
- It follows Dimension Data's February purchase of European solution provider NextiraOne, which was said to be one of the biggest acquisitions in the company's history.
Solution Provider Consolidation Continues As Competition Rises
- Increasing Coverage: This acquisition nearly doubles Dimension Data's presence in the U.S., particularly in areas it does not already have a footprint. With more than 600 employees, Nexus IS has achieved significant scale and was an appealing asset to foreign strategics -particularly coming off its best year ever in 2013 and its 90% 3-year-growth.
 - Building Capabilities: Dimension Data's cloud and hosting abilities, combined with the skill sets and solutions of Nexus, create one of the first national solution providers that can offer a full range of infrastructure solutions - uniquely differentiating themselves from their competitors in both the hosting and implementation space.
- Size Matters: Competition is increasing in the solution provider space, particularly as foreign buyers seek to capitalize on the stability of the recovering U.S. market. This deal will help Dimension Data reach its goal of doubling revenue by 2018 as it looks to distinguish itself from competitors.
For more information, read the press release here.
martinwolf was not the advisor in this transaction.
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About martinwolf
San Francisco, CA Bangalore, India
With offices in San Francisco and Bangalore, India, martinwolf is a leading middle market M&A Advisory focused on companies with services-based business models. Since 1997, our team has completed more than 120 transactions in ten countries. We are a five-year member of the Merrill Lynch PS Referral Network, are partners with Indian professional services firm BMR Advisors and are a strategic partner of the Enterprise Advisory department of CICC, China's first joint-venture investment bank.
The firm is also a presenting sponsor of the Global IT M&A Forum.
martinwolf is a member of FINRA and SIPC. For more information, visit www.martinwolf.com.
To learn more about martinwolf, contact Matthew Putzulu at [email protected].
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