Datatec sells Westcon Americas to Synnex

DATATEC said yesterday it has agreed to sell 100% of Westcon Americas to Synnex for $800million (R10.2-billion).

The JSE-listed ICT group would further sell a 10% equity interest in Westcon International to Synnex for $30-million (R384.6 million), in a deal that would be settled in cash and shares.

After the announcement, Datatec shares were up 26% to R64.49 in early trade on the JSE, valuing the company at R13.5-billion.

Westcon Americas constituted 48% of Westcon-Comstor’s global revenue in the 2017 financial year, with the balance coming from Westcon International.

“This exciting industry-transforming opportunity to partner with a strongly growing, wellrespected Fortune-500 corporation makes sense from both a supplier and customer value perspective,” Datatec CE Jens Montanana said.

Founded in 1980, Synnex operates in numerous countries throughout North and South America, Asia-Pacific and Europe.

The company distributes a broad range of information technology (IT) systems and products, and also provides systems design and integration solutions.

Synnex would have an option to acquire another 10% of Westcon International in 12 months after the conclusion of the deal, which is subject to shareholder and regulatory approvals.

“The [transaction] also enables Westcon International to complete its transformation process and improve operating efficiency, so enhancing its value in the medium term,” the company said.

Westcon-Comstor is nearing the end of a multiyear business transformation process aimed at improving operating efficiencies and modernising its global IT systems and commercial supply chain. — BDlive