Johannesburg-listed Datatec Ltd today announced it has signed a formal letter of intent with Landis Group N.V., a Netherlands company listed on the Amsterdam Stock Exchange.
Under terms yet to be finalised, Datatec will acquire the complete networking distribution activities of Landis, which comprise operations in 10 countries in Europe (Austria, Belgium, Denmark, France, Germany, Netherlands, Norway, Spain, Sweden and the UK). A combination of cash, Datatec or unlisted Westcon Group Inc shares will be used to effect payment.
Landis` distribution business is one of the largest in continental Europe with annual revenues exceeding 450 million euros and approximately 600 employees.
Datatec intends combining the distribution assets and businesses of Landis with its own leading subsidiary, Westcon, to form the industry`s largest data and voice networking distributor concern. The enlarged Westcon Group will become the single largest industry player in Europe in this sector, complementing its existing market leading position in the US, South America, Asia Pacific, SA and the Middle East. The major vendors of both companies are completely complementary. Like Westcon, Landis` major vendor sales comprise products from Cisco Systems, Nortel Networks3Com and Avaya Communications.
Commenting on the announcement, Datatec CEO Jens Montanana said: "We have been working on this for some time and there is compelling logic for both Landis and ourselves to enter into this transaction. The distribution assets of Landis overlay almost perfectly with the footprint of Westcon`s operations. In one single transaction Westcon will go from being a large but regional player in Europe to a market leader, with a presence in 10 countries and with revenues far exceeding the next closest competitor.
"The chances of Westcon being able to consolidate its market leading position and reach revenues around $3 billion in the near future are beginning to appear a real possibility. No pure play competitor of ours has the geographical footprint to match us nor the leverage with the industry`s leading vendors, especially when it comes to technologies in the convergence space."
For further information, please visit our Web site at www.datatec.co.za.
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Datatec is an international networking and IT services company with operations in many of the world`s leading economies. The group provides active management support in the strategic direction and operation of its subsidiaries and has three international networking focused lines of business:
- . Westcon is a global channel provider of advanced networking and Internet access products;
- . Logical is focused on the provision of professional services and IT network integration; and
- . Mason is a strategic telecommunications consultancy. By operating in the different stages of the networking supply chain, through these individually branded businesses, the group believes it can leverage its industry and technology position, deal more effectively with vendors, focus its management and harness its skills base as a sector specialist.
In addition, the group has a number of other operations in SA with similar focused business areas, namely Westcon AME, Affinity Logic and RangeGate. The group operates across the globe and generates more than 95% of its revenue and profits outside SA.
Westcon Group
Westcon Group is a global channel provider of networking technology. Through its divisions, Westcon, Comstor and Voda One, the company offers products and services for convergence technology, remote access, Internet and e-business, virtual private networks, videoconferencing, wireless connectivity and network security. Westcon Group, Inc, is located at 520 White Plains Road, Suite 100, Tarrytown, NY, USA 10591-5167; tel.: 914 829-7170; fax: 914 829-7137; www.westcongroup.com.
Landis Group N.V.
Landis Group is a full service organisation active on the European market for Information and Communication Technology (ICT). Landis provides an assortment of specialised solutions, services and training programs in the field of network infrastructures for speech, data and image applications, Internet-based application platforms and the necessary security systems for all these. Landis has some 2 800 employees and is listed as a stock at the Euronext Amsterdam since 1998.
Landis Group N.V. has branches in the Netherlands, Belgium, Germany, France, the United Kingdom, Sweden, Denmark, Norway, Austria and Spain. The company works with leading suppliers such as Avaya, 3Com, Cisco Systems, Ericsson, Hewlett-Packard, Lucent Technologies, Microsoft, Nokia, Nortel Networks, Novell, Oracle, Siemens and Sun Microsystems.
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