Dimension Data`s 51%-held Asian subsidiary, Datacraft Asia, has bought Korean systems integration company Dasan Electronics for $35 million in cash.
Datacraft says that since it made its first acquisition in Korea in December 1998, its business there has benefited greatly from major investments in the development of national broadband networks, as well as in the provision of training and integration services to major telecommunications and enterprise customers.
"Korea has been a significant market for us in the last couple of years and we`re now focused on playing an even bigger role in the next phase of the Internet build-out there," says Datacraft Asia CEO Ron Cattell.
"The established telecom broadband players are starting in earnest to build up their local customer access networks, having already developed their national backbone networks in the first phase of development.
"At the same time there are well-funded new entrants coming into the market with a need to establish their infrastructure as soon as possible."
He adds that the company believes the time is right to increase its investment in the Korean market, and says Dasan is a successful and profitable company which is well-known by Datacraft.
Dasan has both competed with and worked alongside Datacraft subsidiary Datacraft Korea on specific customer situations in the past.
Dasan will continue to be managed by MD Na Young-Min and will remain as an independent company within Datacraft`s Korean division. With the acquisition, Datacraft now has a total of 63 offices throughout Asia Pacific.
The purchase price is subject to a guaranteed profit before tax of $20 million over 36 months.
The basic purchase price will be adjusted up or down by a maximum of 30%, depending on the actual profits achieved by Dasan over the three-year period.
Datacraft is expected to announce its results for the year to 30 June on 16 August 2001.
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