(SINGAPORE) South Africa-based Dimension Data, a US$3.8 billion IT solutions and services provider, yesterday announced that it intends to acquire the remaining 44.9 per cent Singapore-listed shares of its Asian subsidiary, Datacraft for US$1.33 per share.

The offer price is at a premium of 34 per cent to Datacraft's closing share price of 99 US cents on Monday and translates to a total purchase consideration of some US$276 million.

The acquisition will be effected by way of a Scheme of Arrangement under Singapore law and is being financed with a combination of cash and equity issuance.

Datacraft CEO Bill Padfield told BT that he would retain his post after the acquisition. 'There should be no changes to the current management team or reporting structure as a result of this transaction.'

He added that there would be no job cuts, too.

Mr Padfield said that Datacraft would continue to be a separate legal entity.

'The organisational structure will remain the same. The name of the company will also not change, at least for the forseeable future; we will retain the name due to considerable brand equity and recognition having been built up over the past years.'

In 1997, Dimension Data first acquired a controlling stake in Datacraft. Datacraft has been operating under a separate brand. However, its strategy, operations and solution and services offerings are closely aligned with Dimension Data's.

Dimension Data CEO Brett Dawson noted: 'We are excited about the opportunity to acquire the remaining shares of Datacraft, taking into consideration the growth prospects in Asia and the competitive landscape in our industry.'

Explaining the reasons for the acquisition, Mr Dawson said that integrating Datacraft as a wholly owned subsidiary would provide greater flexibility and 'place us in a better position to capture market opportunities'.

Datacraft's regional performance has been strong. For its fiscal 2008 second quarter results, Datacraft reported revenue growth of 25.5 per cent year-over- year and an after-tax profit increase of 24.9 per cent.

Mr Dawson added: 'As the controlling shareholder for the past 11 years, we know Datacraft is a solid company with an excellent management team and committed and highly skilled employee base.'

He added that the company has a strong competitive position in the key markets in Asia. 'With a footprint spanning 13 countries, market leadership positioning and long-term vendor partnerships, the acquisition of Datacraft is a logical step for us.'

Mr Padfield noted that Dimension Data believes the Asian marketplace will continue to offer attractive future growth opportunities and increasing its stake affords it the opportunity to provide Dimension Data shareholders participation in such growth.

He added that expanding its ownership of Datacraft is a low risk investment for Dimension Data.

The acquisition must secure various regulatory and shareholder approvals prior to completion. Dimension Data anticipates this process will take several months to conclude.

Datacraft shares closed up 29 US cents at US$1.28 on the Singapore stock market yesterday.