Dialog Axiata abandons plans to acquire system integration biz of VSIS

Telecommunication services provider Dialog Axiata PLC this week announced that discussions on the proposed acquisition of the systems integration business of V S Information Systems (Private) Limited (VSIS), namely VSIS Enterprise Solutions (Private) Limited (VES), has been abandoned.

On February this year, Dialog Broadband Networks (Pvt) Ltd. (DBN), a subsidiary of Dialog Axiata, entered into a share sale and purchase agreement to acquire 100 percent shares in VES, a wholly owned subsidiary of VSIS that has an annual turnover of around Rs. 2.7 billion.

In a filing to the Colombo Stock Exchange (CSE), Dialog Axiata said that DBN and VSIS have agreed to terminate discussions on the transaction and will not engage in any further activities with regard to the acquisition.

The transaction, for which the value was not disclosed, was to reach completion by April 2020.

The objective of Dialog Axiata with the acquisition of VES was to widen the telecommunication giant’s enterprise service offering in Sri Lanka and across the Axiata footprint in Asia.
The enterprise solutions at Dialog and VES are aimed at helping firms digitally transform with technologies such as cloud, Internet of Things, Artificial Intelligence and advanced connectivity.