Why is the Dicker Data (ASX:DDR) share price frozen today?

The Dicker Data Ltd (ASX: DDR) share price won't be going anywhere on Monday.

This morning the IT distributor requested that its shares be placed in a trading halt.

As such, Dicker Data shares are frozen at $14.40. It's worth noting the company's shares have gained more than 8% in value in the past month.

Why is the Dicker Data share price halted?

Prior to the market opening, the company requested the Dicker Data share price be halted while it prepares an announcement.

According to the release, the company is planning to make an announcement regarding an acquisition.

Dicker Data has requested that the trading halt remains in place until the release of the announcement or the commencement of trade on Wednesday 23 February, whichever comes first.

What happened?

At this stage, details remain unconfirmed about the company's latest takeover.

A report from the Australian Financial Review indicates that Dicker Data is set to purchase the security and information technology (SIT) business division from ASX-listed Hills Ltd (ASX: HIL).

Founded in 1945, Hills is a distributor that sources security and network solutions to provide end-to-end solutions for its clients.

While Dicker Data will buy just the Australian business unit, the estimated sale figure is rumoured to be around $20 million.

In FY21, Hills' SIT division generated $123.2 million in revenue. This comprises security and IT products such as video systems, surveillance, access control, intrusion protection, Wi-Fi, and firewalls.

The latest buy will see Dicker Data become the largest distributor in the segment, acquiring over 50 new vendors.

About the Dicker Data share price

Since this time last year, Dicker Data shares have gained more than 26% in value.

However, in 2022 the company's shares are down by about 3% following heavy losses on the S&P/ASX All Technology Index (ASX: XTX). The latter has fallen 21% year to date.

Based on valuation grounds, Dicker Data has a market capitalisation of roughly $2.48 billion, with approximately 172 million shares on issue.