Dual-listed Datatec says its Westcon subsidiary will buy the Latin American and Iberian multinational security, virtualisation and data centre distributor, Afina Group (Afina), through the acquisition of its Panamanian holding company GLS Software SA from Araguaya.
The deal, valued at up to EUR50 million - or about R506.8 million - expands Westcon's presence in Latin America, the Caribbean, Europe, and North Africa, says Datatec.
The group adds that it broadens and deepens Westcon's product portfolio, through the addition of new (or stronger) relationships with strategic vendors such as VMware, Riverbed, Symantec and Citrix.
Datatec CEO Jens Montanana says the group identified Afina more than two years ago as a “potentially game changing opportunity for Westcon”. He adds: “It is a key milestone in delivering on our strategic medium term goal of reaching $1 billion of revenues in security-related product solutions, and also brings software virtualisation and data centre products to Westcon's solution set.”
Westcon gains an immediate, on-the-ground, presence in Argentina, Chile, Colombia, Venezuela and Peru, in addition to coverage across Central America and the Caribbean, says Montanana.
“It also adds a significant presence in Mexico, which will boost Westcon's recently established operations there. Afina's operations in Brazil will augment Westcon's existing strong presence in that market,” adds Montanana.
The deal will be bankrolled through the payment of EUR30 million in cash, funded from new loan finance, and EUR10 million in Datatec shares. The remaining EUR10 million will be paid, in cash, in two payments of up to EUR5 million each in 2013 and 2014, subject to Afina meeting certain targets.
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