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Logicalis bolsters 5G capabilities with Siticom buy

Channel player moves for German company that adds more software defined expertise and 5G knowledge

One of the areas tipped to be a major growth area for the channel both this year and in the future has been 5G, and Logicalis has moved to make sure it has a robust proposition in that market.

The channel player has acquired Siticom, which specialises in network infrastructure and 5G, to add more depth to its software-defined capabilities.

The deal, the terms of which were not disclosed, gives Logicalis access to an 11-year-old business that has a staff of 130 experts based in five German locations, and will be the foundation of an EMEA centre of expertise in 5G networks.

“Modern network infrastructures are the foundation of every digital business. The strategic decision to acquire Siticom is driven by the growing demand for broadband services and fibre optics expansion as we continue to deliver speed, scale and agility for global customers,” said Bob Bailkoski, Logicalis CEO.

“As a Cisco Global Gold Partner, we are already developing SD-WAN solutions and together with Siticom we can build on our partnership to create end-to-end 5G offerings for the business of the future,” he added.

In response, Jürgen Hatzipantelis, co-managing director at Siticom, said that the deal would give it the chance to support more global customers. “Our advanced networking expertise combined with Logicalis’ global reach opens up new markets for both businesses. As a global MSP, Logicalis will assist with growing Siticom and building the institutional foundations required to scale the business while preserving our culture of openness and innovation.” 

The other managing director of Siticom, Stefan Höltken, said the combination of SDN, 5G and infrastructure services with the MSP model would give it the chance to “provide a more holistic offering to its customers”.

Largest contributor

Logicalis parent Datatec revealed last month, in its yearly results for the 12 months ending 28 February, that Logicalis was the largest contributor to the group in terms of profitability, and the operation also had the widest geographical reach. The firm’s trading statement indicated that the plan was to keep that situation going, with more acquisitions and organic growth on the cards.

Speaking last month, Jens Montanana, chief executive of Datatec, said the business was moving into a higher margin area, which includes the likes of 5G and infrastructure services.

“This digitisation trend is set to continue, and we have already seen a structural shift in our business away from many forms of traditional hardware to software and services with growing annuity revenue,” he said.

“We are beginning to see the IT landscape increasingly driven by edge computing using many forms of wireless technology and the applications world moving increasingly to cloud based infrastructure.”

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