• Convergence Partners' bid to acquire Datacentrix has received regulatory approval. The Competition Commission and the Independent Communications Authority of South Africa (ICASA) have "unconditionally approved" the transaction.

• The deal, which will see Convergence Partners acquire 100% of Datacentrix from Alviva Holdings, was announced in January 2024 for an undisclosed amount and was subject to regulatory approvals.

The firm’s agreement to acquire Datacentrix came after closing its Convergence Partners Digital Infrastructure Fund (CPDIF) at $296 million in January 2023, purposed to drive digital inclusion across Africa. However, the fund had a first close of $120m in July 2021.

In the January announcement for the deal, the Pan-African private equity firm specifically stated that its “Convergence Partners Digital Infrastructure Fund (CPDIF) has entered into a definitive agreement with Alviva Holdings Limited to acquire 100% of Datacentrix Group.”

The firm said its transaction aligns with the fund's strategy of investing in high-growth companies with strong management teams, and customer and vendor relationships.

Datacentrix, an ICT integration services provider in South Africa, has been in the market for up to 25 years. The acquisition includes the existing Datacentrix management team that has led the company for those years. However, Datacentrix will continue to operate independently, and no changes in operations or staff are envisaged, Convergence Partners said.

Expressing enthusiasm about the transaction, Ahmed Mahomed, Group CEO of Datacentrix, said they look forward to leveraging this new partnership for the benefit of all stakeholders. 

“Datacentrix’s roots are firmly planted in South Africa, and we have ambitions to continue expanding our reach further into the continent and beyond. We look forward to continuing the Datacentrix success story well into the future. The group is well-poised to deliver unparalleled value to its broad client base across Africa and the Middle East.”

For Andile Ngcaba, Chairman of Convergence Partners, the acquisition marks a significant step towards their journey in artificial intelligence (AI), noting that the market is transitioning towards AI-driven enterprises, telecoms, and the public sector. The chairman added that Datacentrix’s existing partnerships will help forge new ones.

Moreover, the CPDIF is focused on long-term investments, including data centres, fibre networks, wireless towers, and AI in Africa.