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Datatec shareholders back Westcon-Comstor sale

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 31 Aug 2017
Datatec CEO Jens Montanana.
Datatec CEO Jens Montanana.

Datatec's shareholders have voted in favour of the group's plans to sell its value-added technology distributor, Westcon-Comstor, to US-based IT supply chain services company, Synnex, for $830 million (R10.8 billion).

The vote took place at a general meeting of Datatec shareholders held on 30 August.

Datatec says 76.72% of shares were represented at the meeting and of these, 100% voted in favour of the approval of the transaction.

In June, Datatec announced it had entered into a definitive agreement to dispose of its Westcon-Comstor business in North America and Latin America (Westcon Americas) to Synnex for a maximum consideration of $800 million (R10.4 billion) and to sell 10% of the remaining part of Westcon (Westcon International) to Synnex for $30 million (R390 million).

Datatec is an international ICT solutions and services group operating in more than 70 countries across North America, Latin America, Europe, Africa, Middle East and Asia-Pacific. The group's service offering spans the technology, integration and consulting sectors of the ICT market.

Its shares are listed on the Johannesburg Stock Exchange and it has a secondary listing on AIM in London. ITWeb reported in April that the dual-listed company was looking to sell a major stake in Westcon-Comstor.

In its audited provisional results for the year ended 28 February, Datatec's revenue declined by 5.8% year-on-year to $6.08 billion from $6.45 billion the previous year.

It said the year ended with a challenging set of circumstances as Westcon-Comstor's SAP and business process outsourcing implementation negatively impacted the EMEA region's results.

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