Landmark deal for DataPro

ADSL South Africa (Broadband South Africa), 19 November 2006

Orion Telecom will effectively become part of the DataPro Group on the first of December this year after a successful bid of R380 000 000. DataPro will settle the amount in cash and shares.
 
Tony van Marken, DataPro Executive Director, described it as a “landmark” deal for DataPro that will give the company the opportunity to offer a truly converged platform, in response to market requests, without the huge investment of developing complementary technologies (Mawson, DataPro bids for Orion). In other words, it will lead to efficiencies that would not be possible otherwise without making huge investments.
 
Benefits for DataPro also include:

• More diversified financial portfolio – In other words, will open up more opportunities in voice and data in terms of growth.

• Access to more agreements – Access will include a "service provision agreement with MTN, and dealer agreements with Vodacom, Cell C and Transtel" (Mawson, DataPro bids for Orion).

• Increased monthly annuity revenue – Although subject to several conditions DataPro can expect to see at least R60 000 000 added to its monthly annuity revenue (Mawson, DataPro bids for Orion).

Benefits for Orion include:

• Access to new range of products and services – No costly developments.

• Integrated voice and data offerings – The utilisation of well-proven platforms to offer integrated voice and data off will make it difficult for "any competitor to try and catch up now" (Jacques du Toit, Orion sales and Marketing Director).

• One stop solution – The new company will be able to offer a one-stop solution to corporations (Mawson, DataPro bids for Orion).

DataPro is definitely set for growth with its latest move. Shareholders can expect a nice return on shares while other role players like broadband ADSL users can expect better deals from DataPro’s side.