By Bola Abbas
Lagos. October 23, 2012: South Africa’s Dimension Data and Nigeria’s ROE are winding down a merger deal closed seven years ago that created the biggest systems integrator in the Nigerian technology market.
Technology Times learnt from people conversant with the situation that both parties are working on a communiqué to jointly dissolve the merger and go their separate ways to explore stakes in the Nigerian and West African markets on amicable terms and without any “finger pointing.”
South Africa’s Dimension Data Group had in May 2005 acquired 51 per cent stakes in Dimension Data Limited in Nigeria which was said at the time to have bought the assets of ROE Limited under a cash purchase deal valued at $4.2 million.
South Africa’s Dimension Data Group closed the deal to buy ROE Limited and formed the mega systems integrator that became Dimension Data Nigeria, an acquisition the former reckoned will increase its “geographical presence and execution capabilities in Africa.”
Prior to the 2005 merger deal, ROE has been operating in the Nigerian market for nine years, and has a client base including oil and gas companies, such as Shell and Chevron, and banks such as First Bank of Nigeria, UBA, Afribank and New Nigeria Bank at the time of the merger.
Ositah Egbuche, Managing Partner of Roe Limited, and who then became chairman of Dimension Data Nigeria, following the merger said at the time that, “the alliance between Dimension Data and Roe has resulted in the formation of the largest systems integrator in Nigeria. The opportunities in this country are enormous, and the demand for IT solutions and services affords Dimension Data Nigeria the potential for considerable growth.”
As the market buzz over the planned dissolution of the two partners continue, Dimension Data announced today that it has have reached an amicable agreement with Beachfront Management Services Limited (BMSL) to end their eight year relationship in West Africa.
The BMSL Group of technology companies counts several technology subsidiaries including FASYLGROUP, ROE LTD, ACCL & BMSL Technology, Realyst Group, BFI Technologies Limited, Technology Times learnt confirming the break-up between the former partners.
Dimension Data has purchased BMSL’s 49 per cent stake in Dimension Data Nigeria for an undisclosed sum, and both companies confirmed they will explore new market opportunities separately in the Nigerian market, the company said in a statement today.
According to Dimension Data, the alliance with BMSL began in 2004 and resulted in the formation of one of the largest systems integrators in Nigeria.
Andile Ngcaba, Chairman, Dimension Data Middle East & Africa says that, “Both parties are committed to West Africa and will continue providing the best, most effective solutions and services to further the business goals of our West African clients.”
According to Frank Onuzo, Chairman of BMSL, “Both Dimension Data and BMSL have enjoyed a successful partnership together over the years and we are parting ways as friends. Going forward the Nigerian market will benefit from both companies’ focus on ICT solutions.”
Ngcaba adds that, “Dimension Data is committed to Nigeria and the African continent today, tomorrow and into the future.”