Proxicom/Dimension Data

Transaction Details


Proxicom/Dimension Data


Reston, VA



Gores Technology Group, LLC

Transaction Type:

M&A Advisory

Close Date:

Dimension Data Plc (LSE: DDT.L), is a South Africa based provider of network infrastructure solutions with $2.1 billion in sales.

Proxicom, founded by Raul Fernandez in 1991, is a leading Web development and IT services firm headquartered in Reston, Virginia. Dimension Data acquired Proxicom in 2001 for $448 million.

Proxicom was burdened with expensive excess lease obligations that resulted from the Company’s significant growth during the late 1990s to early 2001 and the subsequent decline in the IT services market.

Dimension Data made the decision that Proxicom was no longer a fit with Dimension Data and that it would no longer fund the Company’s losses resulting from its excess lease obligations.

Matrix Capital was engaged by Dimension Data and Proxicom to market the Company to both strategic and financial buyers in a very compressed timeframe.

Through a disciplined yet aggressive auction process, Matrix contacted multiple prospective buyers within a month of being engaged.

Proxicom was ultimately sold to Gores Technology Group just four months after Matrix was engaged at a premium valuation over all other offers received.

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