JSE-listed Datatec`s systems and integration solution provider, Logicalis Group, is to acquire Avnet`s US-based HP enterprise end-user business.
The group, which has not disclosed the value of the deal, says the acquisition is with effect from 9 January next year.
The deal is set to boost Logicalis`s US revenues from $350 million a year to more than $450 million.
Datatec says the Avnet HP business is not a separate legal entity, but a division of Avnet.
"The opportunity to acquire the Avnet HP business arose out of Avnet`s strategic decision to focus on its distribution business going forward," it says. "Logicalis will not be acquiring any working capital assets or liabilities as part of the acquisition."
The Avnet HP business, which focuses on HP`s Intel and Alpha server, as well as storage solutions, is an HP premier partner deriving most of its revenue from southwest and central US. It has about 700 end-user customers.
Logicalis has until now had a limited presence in the lucrative Californian market, where it has been looking for opportunities.
"A strong footprint in southern California is seen as strategic to grow Logicalis`s west coast business," the group says. "This applies particularly to California, the sixth largest economy in the world, where a number of investment opportunities have been evaluated but rejected over the past 18 months."
While the Avnet employees dedicated to the HP business will be taken on by Logicalis, the group says it will not take on Avnet staff involved in finance and administration of the Avnet HP business as those functions will be performed by Logicalis employees.
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