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LONDON, 10 August 2004 – Datatec International, the global arm of Datatec, the JSE-listed networking and IT services group, today announced a significant extension of its strategic telecommunication consultancy services with the acquisition of Cambridge-UK based Analysys Limited and the creation of a new company named Analysys Mason Group (AMG).

Analysys Limited is one of the world’s leading telecommunications strategy consulting firms with a global client base that includes regulators, governments, network operators, equipment manufacturers and financial institutions. Analysys’ headquarters are in Cambridge, UK and it has an extensive international footprint with offices in London, Glasgow Paris, Milan, Madrid, San Francisco and Washington DC.

AMG will become the umbrella brand for a broader and deeper consultancy offering comprising the businesses of both Analysys Limited and Mason Group Limited (Mason) Datatec’s existing telecommunications consultancy. Datatec chief executive Jens Montanana says the formation of the new company will significantly enhance the group’s ability to remain at the forefront of fundamental shifts in technology. He cites the globalisation of telecommunications and the mainstream adoption of newer technologies in voice over IP (VoIP), convergence, wireless networking and 3G as the prime drivers of changing client demands for consulting services in the telecommunications field.

“Telcos, IT and media companies are increasingly seeking guidance and support on how best to balance investment returns with a real competitive advantage. Forming AMG will ensure that Datatec stays at the forefront of addressing this need,” he says.

Datatec is funding AMG’s GBP12,8-million ($23,4-million) acquisition of Analysys Limited and is paying for the acquisition in cash, using some of the proceeds from the sale earlier this year of its Logicalis operations in Australia and New Zealand. Datatec International will transfer its shareholding in Mason to AMG as part of a leveraged management buy-in, in which the management of Analysys and Mason will participate in AMG at an equity level of 15% initially, with the ability to purchase up to 24% over a period of time. The new group will have about 300 employees in five countries. The combined revenue of the two companies for the respective last financial years was GBP29-million ($53-million) and is expected to exceed GBP33-million ($60-million) in the current financial year.

Analysys provides strategy development and business planning, technical advice, implementation planning and support services throughout the telecommunications, media and IT sectors. Its research division provides targeted online market intelligence services, off-the-shelf reports examining technology and market trends, bespoke research and analyst support. Mason is a pure-play telecommunications and IT convergence consultancy that provides solutions strategy, business planning, engineering, procurement, project management and network optimisation services.

“The business of Analysys is complementary to that of Mason and there are significant strategic and operational advantages to be obtained through combining the two operations. The newly formed group will have greater critical mass with broader geographic reach and will be more competitive in the TMT sector,” says Montanana.

Under the umbrella of AMG, the businesses will operate independently in the short term, immediately bringing resources together on the basis of client needs rather than seeking short-term efficiencies.

“Our objective is to grow our telecommunications and networking consultancy offering in a market whose demands and opportunities remain fluid, even in subdued conditions. No doubt there will be cost synergies at some point, but this is not the focal point of the transaction, “ emphasises Montanana. “The companies will however share centralised structural services and we expect to achieve both costs savings and synergistic accretive business over time,” he adds.

Benefits to Analysys will include a broadening of its overall service portfolio and access to additional IT expertise through Mason and Logicalis (Datatec’s professional services and network integration group). Mason will benefit from an enlarged geographical footprint as well as access to strategy, regulatory and research capability, additional resources, new clients and greater marketing scale.

Simon Jones, previously managing director of Analysys Limited, will become chief executive of AMG. “This deal provides an unrivalled opportunity to leverage our unique collection of consulting and research expertise and market reach to achieve outstanding insights for our clients.”

Says Terry Flanagan, who will become executive director of AMG and remain as managing director of Mason: “Mason and Analysys have already enjoyed a successful working relationship on a number of projects and we are very excited about the possibility of extending this impact across a wider range of clients.”

Jones says Analysys chose Datatec from an attractive list of suitors because of the companies’ fit, management compatibility, and support going forward. “Finding the right partner was important. We were looking for a partner that could create synergies and also make a significant financial commitment to the business.”

For now it will be business as usual for both Analysys and Mason, says Jones. “But we can already bring a wider range of knowledge and experience to bear on each of our clients. Our central proposition is a reinforced emphasis on quality and operationally practical solutions,” he adds.


About Datatec

Datatec is an international networking and IT services group with operations in Europe, North America, South America, Africa, the Middle East and the Asia Pacific region. The group generates more than 95% of its revenue in hard currency outside South Africa. The group provides active management support in the strategic direction and operation of its subsidiaries and has three principal lines of business:
1. Westcon, a global channel provider of advanced networking, security, data and voice communications and convergence products, based in the US and the largest distributor world-wide of equipment in this sector, with operations in many countries;
2. Logicalis, an international professional services and IT network integration group headquartered in the United Kingdom and with operations in nine countries; and
3. Mason, a leading European telecommunications and IT convergence consultancy providing business solutions to public and private sector organisations worldwide. Mason’s key services include strategic and business planning; procurement and outsourcing; design and engineering; programme and project management; network optimisation and training courses.

The Datatec group also has similarly focused operations in South Africa. These are Westcon AME and RangeGate.

For further information:
David Pfaff
+ 27 11 233 3307/1221 or 082 8919618

Issued by:
Trevor Jones
Ogilvy Public Relations Worldwide
+ 27 11 880 2271 / +27 83 326 7698

This press release was distributed by ResponseSource Press Release Wire on behalf of Mason Group in the following categories: Consumer Technology, Personal Finance, Business & Finance, Computing & Telecoms, for more information visit