In a brief statement last week, Convergence Partners announced that it has sold its stake in Dimension Data Middle East & Africa, fully exiting its investment in the firm. The IT infrastructure and solutions provider was housed in the portfolio of the private equity firm’s first fund, the R1 billion Convergence Partners Fund I. Financial terms of the deal were not disclosed.
Convergence first backed DiData in 2004 as part of the original DiData B-BBEE transaction, remaining invested until June this year. The contractual investment term ended in September 2016 and Convergence Partners and DiData agreed a consensual exit to the investment. As a result of the sale, Andile Ngcaba, Convergence’s founding partner, is stepping down as Executive Chairman of DiData as well as from the various group-related Boards on which he served.
Convergence continues to back TMT companies across sub-Saharan Africa, including, most recently, teaming up with Google, Mitsui and the IFC to invest up to $100 million in CSquared, a broadband infrastructure company building wholesale metro fibre optic networks on the continent. The firm’s second fund, Convergence Partners Communication Infrastructure Fund or CPCIF, closed with $200 million in August 2015.