South African networking giant Datatec is considering acquisitions in the United States and elsewhere in Africa because it is convinced the international markets are beginning to recover.
Datatec does around 98 per cent of its business outside of South Africa, despite trading on the Johannesburg Stock Exchange (JSE). It also trades in London.
Jens Montanana, chief executive officer (CEO) of Datatec, told Bloomberg: “This year we do sense a recovery in the US.”
“For the first time in five to six years, we are starting to have the conviction that the market is getting stronger. We may start to look at the US for acquisitions.”
The increased confidence is helped by the rand sitting at a current four year low against the US dollar.
HumanIPO reported earlier this month Datatec had seen a decline of more than US$9 million in its operating profits to US$141.4 million for its financial year ending February 2013.
Montanana said in the past five to ten years Datatec had spent between US$100 million and US$150 million per year on buyouts.
Despite focusing on the US market, Datatec is looking at opportunities around the world, including Africa.
