Datatec ("Datatec", "the Group", JSE and LSE: DTC) announces that its subsidiary, Westcon Group ("Westcon"), has acquired the assets of Cernet of America, and its related Mexican company, Cernet Tecnologia en Telecommunicaciones ("Cernet"), for a maximum cash consideration of $4.65 million.
Cernet is a value-added distributor known for its strength in wireless networking, LAN/WAN, and security systems and has a customer base of over 300 resellers throughout the CALA (Caribbean and Latin America) region.
Cernet has been serving customers in this region since its foundation over 15 years ago. Its vendors include Motorola, Alcatel-Lucent, Foundry, Proxim Wireless and many others.
Cernet reported EBITDA of approximately $1 million for the year ended 31 December 2006. The net assets of the business are approximately $1 million at acquisition. The business is being acquired on a debt/cash free basis. The consideration comprises an initial cash payment of $3.45 million with an additional earn-out of up to $1.2 million based on the performance of the business over the next six months.
Jens Montanana, Chief Executive of Datatec, comments: "This is a further extension of Westcon's business into emerging markets, based on its expertise and focus on the wireless technology and security sectors."
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Datatec Limited is an international information and communications technology (ICT) group focused on the supply of advanced ICT and the delivery of professional services into the higher growth segments of the global market. The group's main lines of business comprise the global distribution of advanced networking and communications convergence products (Westcon Group), IT infrastructure solutions and network integration (Logicalis) and strategic telecommunications consulting (Analysys Mason Group). Datatec is registered in South Africa and its shares are listed in Johannesburg and London. The group has 3 000 employees around the world.
In the year to 28 February 2007, the group reported an increase in revenue of 17% to $3.2 billion (2006: $2.7 billion), operating profit increased 45% to $100 million (2006: $69 million), and headline earnings per share grew to 40.80 cents (2006: 26.9 cents).
Westcon Group
Westcon Group is the leading specialty distributor in networking, security, mobility and convergence for leading technology vendors, including Cisco, Nortel and Avaya. Through its Westcon, Comstor and Voda One business practices, Westcon Group sells products and services to resellers, systems integrators and service providers. Westcon Group has particular expertise in the convergence of voice, data and video applications and technologies, including voice over Internet protocol, or VOIP, security for networking and communications systems, remote access, Internet and e-business, virtual private networks, videoconferencing and wireless connectivity. For more information, visit www.westcongroup.com.
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