The Middle East & Africa business of the $4,5-billion Dimension Data group has acquired a 51% stake in Telcom (officially Télédistribution et Communication SARL) for an undisclosed sum.
The transaction is effective 1 November 2009, and represents a further step for Dimension Data to establish a strong presence in emerging West, East, South, and North Africa.
Telcom operates in the telecommunications infrastructure service space. The company will immediately be rebranded and transitioned to become Dimension Data Maroc, and plans are already underway to grow the business in the IT space.
Andile Ngcaba, chairman of Dimension Data Middle East & Africa, says he’s excited about the transaction. “Dimension Data MEA’s acquisition of a majority stake in Telcom enhances our plans to be represented in the four corners of emerging Africa.”
“We now have a strong presence in English speaking West Africa (Nigeria and Ghana); East Africa (Kenya, Uganda and Tanzania); and emerging Southern Africa (Namibia, Botswana and Angola). Our entry into the Kingdom of Morocco brings the number of employees in the Dimension Data Emerging Africa territory to around 600 employees and the Dimension Data Middle East and Africa group (incorporating South Africa) to more than 5 000 employees.
“Morocco has a relatively well developed ICT sector as evidenced by the high mobile and internet penetration rates. In addition, its proximity to large EU markets, and the nature of what is essentially a services driven economy, has also contributed to a vibrant and growing sector.”
Dimension Data’s Algerian business, which has been operating under the auspices of the Group’s European operation for the past five years, will be transitioned to the Middle East & Africa business as part of the North African plan.
Reda Meziane Belfkih, currently Managing Director of Telcom, who will head up Dimension Data Maroc says: “The management and our 130-strong team of employees are delighted to be part of a global organisation. We have built up a solid reputation in the market since it was founded over nine years ago in 2000, and look forward to taking the business to a new level together with Dimension Data.”
INgcaba adds: "Initially, Dimension Data Maroc will operate out of offices in Témara (close to Rabat) and Casablanca. Future plans are to grow the company’s core business, as well as the Network Integration, Microsoft Solutions, and Advanced Infrastructure business units, with strong focus on the service provider market and select areas in the public sector. In time, we will introduce our Data Centre and Storage offerings to the region.
He adds that both Cisco and Microsoft have committed their support to growing market share with Dimension Data in the region.
“Dimension Data will also provide the personnel, skills, systems, and technology support to ensure the Morocco business grows effectively. In addition, the Group will contribute its sales and delivery expertise, and deep experience in public sector markets for the region’s services offerings.
“What’s particularly exciting in this region is an accelerating 'nearshoring/offshoring' industry in Morocco building operations for EU-based organisations. We see this as an attractive area for Dimension Data Maroc, especially with our Internet Solutions and Merchants experience.”