Datatec subsidiary Logicalis Group has agreed to acquire the European subsidiaries of 2e2, excluding the UK business, for €24-million ($31-million) in cash.
The consideration will be funded by a combination of cash and the issue of Datatec shares.

Logicalis will acquire the business from the administrators of 2e2. In addition, the UK operations of Logicalis have taken on certain business, together with approximately 70 employees, from the UK 2e2 companies currently in administration.

The four separate businesses being acquired are in Spain, Ireland, the Netherlands and the Channel Islands:

*  An IBM focused system integrator in Spain operating under the Morse trade name with a strong enterprise managed services focus;

* An IBM, NetApp and HP focused provider of enterprise hardware & software solutions and services in the Republic of Ireland operating under the Morse trade name;

* A HP and Xerox focused provider of managed services solutions in the Channel Islands; and

* A provider of IT service management consulting services and solutions in the Netherlands.

Together these businesses achieved unaudited revenues of approximately $150-million in the year ended 31 December 2012 with unaudited EBITDA of more than $8-million. In total, over 500 employees from 2e2 operations will now be joining Logicalis.

“This acquisition of these four businesses immediately expands Logicalis’ European footprint and enables us to improve our offering to Logicalis’ multi-national and Latin American clients.
“They also open service opportunities in new customer markets which can be developed across the Logicalis group. We are also pleased to welcome the new employees to the group,” says Jens Montanana, Datatec’s chief executive comments.