Datatec

JP: DTCJ

Market CapZAR9,903m

Last Close ZAR44.66

Datatec is a South Africa-listed multinational information communication technology business serving clients globally, predominantly in the networking and telecoms sectors. Its three divisions are Westcon International (distribution), Logicalis (IT services) and Analysys Mason (consulting).

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Investment summary

Datatec has announced the management buyout of Analysys Mason, its TMT research and management consultancy arm, backed by Bridgepoint 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 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 (IT distribution). The maximum proceeds receivable by Datatec are US$176m (c 38% of Datatec’s current market capitalisation), with the net proceeds to be returned to shareholders.

Y/E Feb
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2021A 4109.5 130.1 73.1 13.2 20.1 3.3
2022A 4636.8 177.1 85.0 18.2 14.6 3.0
2023E 4919.2 190.9 95.9 19.0 13.9 3.0
2024E 5116.9 201.2 107.3 24.5 10.8 2.8
Industry outlook

Datatec has seen strong growth globally, with elevated demand for networking, cybersecurity and cloud infrastructure. Amidst continuing economic and geopolitical uncertainties, there are signs that global growth is slowing, but we expect the established technology trends to persist, underpinned by an unwinding of the record backlog during H223/FY24.

Last updated on 10/08/2022
Content on Datatec
Datatec – Management buyout of Analysys Mason
TMT | research Flash note | 30 June 2022
XP Power
Datatec – Potential strategic sale of Analysys Mason
TMT | research Update | 13 June 2022
XP Power
Datatec – Strong year across the board despite challenges
TMT | research Flash note | 25 May 2022
XP Power
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Share price graph
Balance sheet
Forecast net debt (US$m) 153.6
Forecast gearing ratio (%) 23
Price performance
%
1m
3m
12m
Actual 1.4 16.7 96.9
Relative* (0.7) 12.0 96.5
52-week high/low ZAR45.4/ZAR22.9
*% relative to local index
Key management
Jens Montanana CEO
Ivan Dittrich Finance Director