Datatec Limited`s global channel provider of networking technology products, US based Westcon Group, has entered an agreement to acquire premier Australian networking distributor LAN Systems Pty Ltd, the region`s top CISCO distributor, for an undisclosed figure.
The Sydney-based LAN Systems, which targets the Australia/New Zealand territories, has sales projections in excess of AUD$90 million for the fiscal year ending 30 June 2000. The Australian distributor will operate under the Westcon Group`s CISCO-focused Comstor division, expanding its presence in the Asia-Pacific market.
The acquisition is directly in line with Westcon`s heightened Cisco focus as outlined in previous communications. Jens Montanana, Chairman and CEO of Datatec said, "This acquisition forms part of our stated realignment of Westcon to focus more on CISCO in response to increased global demand for this vendor`s products. Also, adding a company of Lan Systems` caliber to the Westcon Group in this region will considerably strengthen the Group`s presence in Australia and New Zealand."
LAN Systems was named CISCO`s Distributor of the Year, 1999 for Australia and New Zealand and was rated Australia`s fastest-growing IT company, 1999 by BRW (Business Review Weekly). In addition to its strong CISCO relationship, its vendor partners include Alcatel, Check Point Software Technologies, Citrix and Xylan. With LAN Systems` addition to Comstor`s operations, the Comstor division has representation in Australia, Germany, New Zealand, Singapore, South Africa, the UK and the US.
"The LAN Systems purchase represents another accretive acquisition for the Westcon Group," said Alan Marc Smith, vice president and chief operating officer of Westcon Group. "As the Westcon Group looked toward a continued schedule of expansion,
Australia presented itself as an opportunity to expand our CISCO presence in a major market economy of the Asia/Pacific region," according to Smith.
"Our ability to acquire CISCO`s largest distributor in the Australia and New Zealand regions fits the ongoing growth and acquisition philosophy of our company," Smith continued.
"The acquisition of LAN Systems will increase the Westcon Group`s CISCO capabilities and value-added offerings in a significant economic territory, with projected CISCO-related worldwide revenues in excess of $1 billion. It enhances the company`s preeminence as a customer-focused, global channel provider," commented Roman Michalowski, president and CEO of Westcon Group.
"We are very pleased to be joining a company of the Westcon Group`s magnitude in the world market," said Nick Verykios, chief marketing officer of LAN Systems. "Since LAN Systems began, our charter has always been to be the most innovative distributor in Australia. With this mentality we have done more than carve out a niche to operate in, we`ve become one of the key players. With the resources of the Westcon Group behind us we intend to push a lot harder into the local market place, build strong brand recognition for the Comstor division, and find more ways to add further value for our mutual customers."
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