Dual-listed Datatec has bought Datastor, a New Zealand ICT distribution business, for an undisclosed amount.
The acquisition gives Datatec subsidiary Westcon Group an opportunity to add to its operations in the region to create a market-leading position, which will complement its Asia Pacific distribution business, it says. The deal, paid for in cash, has been funded from Westcon's reserves.
Datastor is a value-added distributor focusing on technology enablement and distribution of storage and virtualisation products, solutions and services. It has alliances with more than 20 global technology vendors, including VMware, EMC, Seagate, APC, IBM and Juniper.
Geographic growth
The investment will also provide Westcon with a platform to extend its global and regional vendor relationships through an increased customer footprint and market presence, it says. Westcon has operations in North and South America, Europe, Middle East, Africa, Asia, and Australia.
Datatec CEO Jens Montanana says: “The Asia Pacific market has been the source of significant growth for Datatec over the past decade. This acquisition allows Westcon Group to extend its reach in the region and to service vendor demand by providing consolidated distribution channels and cross-border transactional capability for partners in Asia Pacific.”
He says the deal will also allow the company to grow its market share and make alliances with new technology vendors.
Datastor expects turnover of about $69 million for the year to March. Yesterday, Datatec said it was on its way to meeting its full-year revenue target of between $3.7 billion and $4 billion. At the half year to August, the company had generated about $1.8 billion.
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