Dual-listed Datatec's Westcon unit has agreed to buy Sentronics for an undisclosed amount.
Sentronics is a South African value-added distributor of IT physical security and video solutions.
The company says in a statement that the deal “continues Westcon SA's expansion of its solution portfolio”. Adding Sentronics' offerings to its portfolio will enable the unit to “better serve the growing demand for security solutions among its existing customers,” it says.
Sentronics was founded in 2004 and supplies several electronic security products, such as CCTV, access control, building management systems and integrated security solutions. Its portfolio includes Pelco, Sony, Flir and Vivotek, and its internally-branded physical security solution called Synergy.
Sentronics has annualised revenue of over $8 million, or R63.4 million, and will now form part of Westcon's local security operations. Westcon, which accounted for 74% of Datatec's revenue in the first half of the year, turned over $1.8 billion in the six months to August.
CEO Jens Montanana says the purchase of the “niche security distributor in SA allows Westcon to address changing local market conditions and provides a wider offering to better service its customers' requirements”.
Montanana adds combining the solutions “creates a significant opportunity to provide advanced solutions to both customer bases”.
CFO Ivan Dittrich previously said Datatec would continue to seek bolt-on acquisitions to further diversify its product range and geographical reach, although any deal would not exceed 10% of Datatec's revenue in any one year. During the first half of the year, it spent $48.9 million on acquisitions.
Among the deals was an August purchase by Westcon of German-based entrada Kommunikations, which distributes IT security products in the region.
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