Datatec - Management buyout of Analysys Mason
As a first step in its ongoing strategic review, Datatec has announced the management buyout of Analysys Mason, its TMT research and management consultancy arm, backed by Bridgepoint Development Capital for an EV of up to £210m (US$260m), 2.9x FY22 EV/sales and 14.4x FY22 EV/adjusted EBITDA (excluding share-based payment charges). Management’s strategic review, which has not necessarily concluded, has started to unpick the group’s embedded value, with the sale of Analysys Mason leaving Datatec as a simpler group with two principal businesses, Logicalis (IT services) and Westcon International (IT distribution). The maximum proceeds receivable by Datatec are US$176m (c 38% of its current market capitalisation), with the net proceeds to be returned to shareholders. As a Johannesburg-listed, global ICT play, Datatec trades at a substantial discount to both its global peer group and our sum-of-the-parts valuation. Assuming continued strong operating performance, we expect this discount to continue to narrow over time.Datatec is an international information and communications technology (ICT) business with operations in over 60 countries across North America, Latin America, Europe, Africa, Middle East and Asia-Pacific. Co.'s segmental include: Westcon, which is engaged in the distribution of networking, security, and unified communications products and data center solutions; Logicalis, which is engaged in ICT infrastructure solutions and services; Consulting Services, which is engaged in strategic and technical consulting; Corporate, which is comprised of head office companies including Datatec Financial Services, a new capital/leasing business under development and consolidation adjustments.
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