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Cloud Provider Dimension Data Acquires NextiraOne Subsidiaries

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Global IT and cloud services provider Dimension Data has acquired certain subsidiaries of business solutions and communications services provider NextiraOne, in a deal which Dimension Data CEO Brett Dawson said will help double the company’s revenue to $12 billion over five years.

Dimension Data, itself fully acquired by large Japanese telecom NTT in 2010, will be rolling out a two-part transaction across Europe. The first part is the acquisition of NextiraOne’s businesses and 1,850 employees in Austria, Belgium, the Czech Republic, Germany, Hungary, Ireland, Luxembourg, the Netherlands, Poland, Portugal, Slovakia, Spain and the UK. The second part will be acquiring NextiraOne’s operations in France and Italy in mid-2015 if certain performance conditions are met.

“Last year, the Group announced that it will, from $6 billion to $12 billion. We tripled our business in the last 10 years, and now we’re looking to double it through.

Dimension Data tripled its revenue over the past 10 years, and last year it announced it would double its revenue over the next five years through growth and acquisitions, according to Dawson. “With this transaction, Dimension Data will enter new market segments, grow our client base, and add 1,850 talented employees with great skills to the Dimension Data family. It also provides us with the opportunity to expand into the middle market,” he said in a statement.

Dimension Data’s roll out of a cloud-based backup and recovery service in 2013 was in keeping with the company’s desire to provide solutions spanning different market segments.

But NextiraOne will further add to Dimension Data’s offerings. Its unified communications and collaboration capabilities as well as its abilities to span multiple platforms including legacy systems are a major boost to Dimension Data’s portfolio. With this combined portfolio of IT services, Dimension Data hopes to generate more revenue from the SMB, commercial, public sector, and enterprise markets.

This European acquisition deal is probably the most significant announcement Dimension Data has made recently in its aggressive global expansion. In November 2013, it added four new data centers in Ashburn, Virginia, Melbourne, Australia, London, UK, and Sao Paulo, Brazil to underpin its managed cloud platform. Earlier in the year, the company began a Data-Center-as-a-Service offering from NEXTDC’s ONEDC data center in Australia, and it expanded its managed cloud services to Japan, and India.

Over the next three months, NextiraOne will be rebranded to Dimension Data, and integration will be led by Dimension Data Europe CEO Andrew Coulsen. NextiraOne CEO David Winn will maintain his CEO role as he leads the remaining NextiraOne France and Italy businesses, and Winn will also act as Dimension Data’s advisor for client and vendor engagements.

About the Author

David Hamilton is a Toronto-based technology journalist who has written for the National Post and other news outlets. He has covered the hosting industry internationally for the Web Host Industry Review with particular attention to innovative hosting solutions and the issues facing the industry. David is a graduate of Queen’s University and the Humber College School of Media Studies.

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