Logicalis sells SMC unit to DXC Technology

Logicalis sells SMC unit to DXC Technology

Logicalis SMC will be rebranded as Fruition Partners

Mike Lawrie - DXC Technology chairman, president and CEO, rings the opening bell at the New York Stock Exchange

Mike Lawrie - DXC Technology chairman, president and CEO, rings the opening bell at the New York Stock Exchange

Logicalis Group has sold its Netherlands-based service management consultancy operation, Logicalis SMC, to DXC Technology, for an undisclosed sum.

Logicalis acquired SMC back in March 2013 as one of the four European operations purchased from 2e2.

Since then, the SMC business grew significantly and now employs 184 people, and is the largest ServiceNow partner in Europe.

After taking more than one year to evaluate its options in the market, SMC will be rebranded and join the DXC Technology ServiceNow practice within Fruition Partners.

“This new structure will not just enable us to further expand and grow our ServiceNow business, but will also provide a global footprint for IT4IT architecture framework, envisioned, powered and implemented by us in the highly agile IT activities at our customers,” Logicalis SMC said in a statement.

“The Fruition acquisition supports both our customers and employees ambitions, and offers unprecedented possibilities. It was these requirements that were the starting point in our search.”  

As part of the transaction, Logicalis will continue to maintain a trading relationship with SMC whilst releasing funds to reinvest in Logicalis’ core operations and focus on further mergers and acquisitions.

“Our time with Logicalis has been tremendously prosperous, allowing us to double in size and triple our revenues since Logicalis acquired us in 2013," Logicalis SMC CEO, Eugene Wolf, said.

"Joining a ServiceNow specialist like DXC’s Fruition Partners allows us to grow our IT4IT-practice even faster. We are very excited about the next phase of our development,” Wolf said.

In a statement, Datatec CEO, Jens Montanana, said the deal represented outstanding value to divest a non-core business while allowing its business relationship with SMC to continue under the new ownership. Logicalis Group is a subsidiary of Datatec.

“This is a win-win deal for all parties," Logicalis CEO, Mark Rogers, said. "SMC can continue their growth in the service management consultancy and training arena, DXC will add another strong European arm to their operation and Logicalis will release funds to focus on our core business, as we evolve as a leading digital transformation enabler, and on our M&A ambitions.

"Meanwhile our customers will benefit from the strong relationship we will maintain with SMC."

In June, US-based Synnex - which operates independently from the Taiwan-headquartered company operating across Australia and New Zealand (A/NZ) - paid US$30 million for ten per cent ownership of Datatec's Westcon APAC and EMEA divisions.

Following months of speculation and channel conjecture, the local and regional business of Westcon-Comstor remain under Datatec ownership, alongside Europe, the Middle East and Africa (EMEA) which also follows the same shareholder agreement.

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