Datatec Limited, the international networking and IT services group, reported today that its networking distribution subsidiary, Westcon Group Inc., has reached an agreement that will see it expand its European operations by assuming the employees, fixed assets, supplier contracts and customer lists of Business Partners, the networking distribution division of Dutch-based Landis Group NV.
Over 500 Landis staff, located in nine European countries, will become employees of Westcon and the fixed assets, supplier contracts and customer lists will be assumed for a value not expected to exceed EUR7-million. No liabilities or debts will be assumed.
Datatec has previously been in negotiations with Landis for all the assets and liabilities of Business Partners but the transaction was not concluded.
The Landis distribution business is one of the largest in continental Europe with revenues of about $400-million last year. Landis has operations in the Netherlands, Belgium, Denmark, France, Germany, Norway, Sweden, Spain and Austria. It distributes products from major vendors such as Sun Microsystems, Nortel Networks, 3 Com, Avaya Communications, Network Associates, Veritas Software Corp. and Oracle. Landis is listed on the Amsterdam Stock Exchange.
Datatec Chief Executive Officer, Jens Montanana says European expansion through a combination of organic growth and acquisitions remains a key goal for Westcon. "This transaction will make the Westcon Group one of Europe`s largest voice and data networking distributors, adding to its established offices in the United Kingdom, Belgium and Germany," he says.
Says Montanana: "We believe that Westcon`s proven expertise in networking distribution around the world, combined with the existing Business Partner businesses of Landis, will significantly extend our existing business in Europe and build a solid and highly competitive European networking operation for Westcon."
Says Alan Marc Smith, president and CEO of Westcon: "We are excited to see this transaction finally come to fruition. It is clear that this is a strategic fit, both geographically and technologically.
"In the networking and telecommunications distribution arena, we are currently one of the leaders in North America, South America and the Asia-Pacific region. Upon completion of this transaction, our enhanced market position in Europe will increase our profile and broaden our product portfolio, including the extension of our relationship with Cisco Systems (CSCO), into some of these new markets. This will allow us to provide more comprehensive solutions to our customers with the objective of making them more competitive," says Smith.
For more information, please visit our website on 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 South Africa with similar focused business areas. These are Westcon AME, Affinity Logic and RangeGate.
The Group operates on six continents and generates more than 95% of its revenue and profits outside South Africa.
Westcon
Westcon Group, Inc., 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. Visit us at www.westcongroup.com.
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