South Africa’s Datatec stakes in Westcon-Comstor for USD800 million

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South Africa’s Datatec, an Information and Communications Technology (ICT) Company has sold stakes in Westcon-Comstor to SYNNEX for a total of USD830 million.

Based on Datatec’s disclosure, 100% of stake in Westcon-Comstor North America and Latam operations will be sold to SYNNEX for USD800 million while 10% stake in the rest of the company will be sold to SYNNEX at USD30 million.

The Transaction provides a unique opportunity for Datatec to partner with a leading distribution business in North America and benefits from its significant scale. The Transaction also enables Westcon International to complete its transformation process and improve operating efficiency, so enhancing its value in the medium term.

Closing of the Transaction is subject to a number of conditions including shareholder and regulatory approvals. A circular to shareholders of Datatec containing full details of the Transaction, and convening a general meeting of the shareholders to approve the Transaction as a category 1 transaction, will be sent to shareholders in due course and the salient dates and times of the Transaction, including the date of the general meeting, will be announced on SENS once the circular has been posted.

Jens Montanana, Datatec CEO, said: “This exciting industry-transforming opportunity to partner with a strongly-growing, well respected Fortune 500 corporation makes sense from both a supplier and customer value perspective. “Westcon-Comstor North America will benefit substantially from being part of a bigger business with a much larger addressable market – and so will our shareholders with our stake in SYNNEX. “The transaction also

He added that “The transaction also realises value for our shareholders as a result of the strategic relationship with SYNNEX through its shareholding in Westcon International – a business which is yet to benefit from the ERP and BPO transformation programmes currently being implemented. “Post-transaction, the Westcon-Comstor businesses will work seamlessly together for our vendors and customers globally, enabling us to unlock further potential for Westcon International”.

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