Convergence Partners, an investment company focused on the Technology, Media and Telecommunications (TMT) sector in Afrika, has revealed that it has exited its investment in IT services and solutions company, Dimension Data Middle East & Africa (DiData). Convergence Partners made its first investment in DiData in 2004, this was part of the DiData B-BBEE transaction.
Although Convergence Partners has fully exited its shareholding in DiData, the investment company has indicated that it will continue to invest in TMT companies across sub-Saharan Afrika.
"Convergence Partners will continue to invest in various technologies and services in the TMT sector across sub-Saharan Africa, but our primary focus is on the infrastructure layer in the telecoms space and other areas that can deliver cost effective, high quality services to the African continent," said Brandon Doyle, CEO at Convergence Partners when commenting on the exit to iAfrikan.
Convergence Partners remained invested in DiData until June 2017 with the contractual investment term ending in September 2016.
Given that shareholders at DiData are subject to confidentiality as per the original agreement, according to Doyle, he couldn't shed light on the exact sum Convergence Partners received for selling their shareholding in DiData.
"The deal terms are confidential. Convergence received payment commensurate to current market value," explained Doyle.
As part of the exit, Andile Ngcaba (Founding Partner and Chairperson at Convergence Partners) has stepped down from the various positions he held at DiData group Boards including that of Executive Chairman.
"Effective date of exit and Andile stepping down is June 2017," conclude Doyle.
Cover Image Credit: Andile Ngcaba, Founding Partner and Chairperson at Convergence Partners. | iAfrikan