Logicalis Group, Datatec`s wholly-owned systems and integration solution provider, has announced plans to acquire the US$100 million-a-year US-based HP enterprise end-user business of Avnet Inc with effect from 9 January next year.
The acquisition, which will be via Logicalis Group`s wholly-owned US subsidiary Logicalis Inc, will grow US annual revenues from US$350 million to US$450 million and firmly position Logicalis as one of the largest systems integrators in the US.
The acquisition will particularly strengthen Logicalis` footprint in the Californian market, the sixth largest economy in the world, where Logicalis has had a limited presence up to now and has been seeking growth opportunities.
A multi-year exclusive distribution agreement has also been concluded for Logicalis Inc to purchase all of its HP and IBM enterprise solution products from Avnet Partner Solutions in the US.
Datatec and Logicalis Group CEO Jens Montanana says: "This announcement is part of Logicalis Group`s continuing strategy to grow both organically and by acquisition especially in the US and UK markets. The move further strengthens our strategic partnerships with HP and IBM."
Over the past year, Logicalis has acquired two IBM Premier Business Partners in the US - Solution Technology and Eisco. Meanwhile, in the UK, it has made three similar acquisitions - Hawke Systems, an HP Storage Elite Partner, and two IBM Premier Partners, Notability Solutions and TBC.
Avnet`s US-based HP enterprise end-user business is an HP Premier Partner with the majority of revenue generated in two geographic regions - the Southwest and Central USA. The business has some 700 end-user customers and is focused on HP`s Intel and Alpha server, and storage solutions. The Avnet employees dedicated to this business unit will become employees of Logicalis Inc following the completion of the acquisition.
The deal is subject to the normal conditions precedent; however, SA Reserve Bank approval has already been granted.
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