Africa-focused PE acquires Dimension Data’s subsidiaries in Nigeria, Ghana

17 May 2017
Financial Nigeria

Summary

Synergy Capital Managers said the acquired companies – Dimension Data Nigeria Limited and Dimension Data Ghana Limited – will commence trading under the new name of Cloud Exchange Limited.

Akintoye Akindele, Partner, Synergy Capital Managers

Synergy Capital Managers, an Africa-focused private equity firm, announced today that it has acquired the Nigerian and Ghanaian subsidiaries of Dimension Data Group, a leading Dutch information and communications technology (ICT) provider.

The Lagos-based firm said it made the acquisition through its Synergy Private Equity Fund (SPEF) – a $100 million private equity fund targeting high-growth companies in West Africa.

“Synergy is pleased to be part of this partnership with Dimension Data,” said Akintoye Akindele, Partner at Synergy Capital Managers. “This partnership will build on SPEF’s commitment to create a strong regional platform for serving sub-Saharan enterprises with cloud and virtual computing services. Our ability to anticipate and adapt to technological changes has been the drive for this partnership and acquisition.”

As part of the deal, the acquired companies – Dimension Data Nigeria Limited and Dimension Data Ghana Limited – will commence trading under the new name of Cloud Exchange Limited after a brief transitional period.

The companies will, however, remain the exclusive partners of Dimension Data Group in both countries. Dimension Data will act as technical partner to Cloud Exchange Limited, providing technology and support.

Synergy Capital Managers said PwC Nigeria conducted financial due diligence on the deal, while legal due diligence and advisory services were provided by Orrick Herrington & Sutcliffe, The New Practice, and Sefton Fross.

“It has been an eye opening experience working with Synergy,” said Glad Dibetso, CEO of Dimension Data Limited Nigeria. “When we began, we were building a great systems integration business. But with Synergy, we are building a cloud business that will offer secure, virtual computing solutions to enterprises in Middle Africa.”

Founded in 2007, Synergy Capital Managers is a private equity firm focused on investing in high-growth companies in Nigeria, Ghana, Liberia, and Sierra Lone. The company’s first fund – SPEF – has made ten investments in sectors such as agro-processing, ecommerce, manufacturing, oil and gas, power, pharmaceuticals, ICT, business solutions, and financial non-banking services.


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