Datatec, ("Datatec" or the "Group", JSE and LSE: DTC), the international ICT group, has today added a full service capability to distribute and support Cisco products and services to its established Westcon operations in Brazil.
This new capability has the potential to grow rapidly and report additional revenue of over $100 million over the next two years.
Westcon is making an initial investment of $5 million. The addition of a Cisco Enterprise and SME solutions distribution business has been fast-tracked by the recruitment of an experienced team of over 30 Cisco-trained specialist technical and sales staff, most from a leading local Cisco distribution partner.
The team has the proven Cisco skills and the vital customer relationships to ensure sustained success and growth.
This development is an important part of the group's strategy to accelerate its business in key emerging markets and developing countries. Along with the recent expansion of Westcon's Cisco distribution business into such markets as Turkey, Westcon is now adding its extensive Cisco expertise to its operations in one of the world's fastest growing economies.
Westcon Brazil, established nine years ago, has a recognised presence throughout Brazil, serving integrators, resellers and service providers with networking, security and convergence technologies from multiple vendors.
Westcon, which is one of Cisco's three 'broad-based' global distributors, will immediately leverage its existing infrastructure and global solutions programmes to support the launch of this new business and provide rapid market development.
Jens Montanana, Chief Executive of Datatec, commented: "We have been exploring opportunities with Cisco to develop our businesses across South America, to complement our strong representation in North America and build on our extensive experience in Brazil and recent acquisition of the Cernet business in the wireless and security markets across the region. This investment provides the platform to meet our joint aims of developing both new and existing business in South America's largest economy.
"For us at Datatec, it is a very important step with Cisco in this region, and the group's largest organic initiative to date. It is a tremendous opportunity to drive our development in the first of the BRIC countries, with a potential for good, rapid margin growth."
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Datatec Limited is an international ICT group focused on the supply of advanced ICT and the delivery of professional services into the higher growth segments of the global market. The group's main lines of business comprise the global distribution of advanced networking and communications convergence products (Westcon Group Inc), IT infrastructure solutions and network integration (Logicalis Ltd) and strategic telecommunications consulting (Analysys Mason Group Ltd). Datatec is registered in South Africa and its shares are listed in Johannesburg and London. The group has more than 3 000 employees around the world.
In the year to 28 February 2007, the group reported an increase in revenue of 17% to $3.2 billion (2006 restated: $2.7 billion), operating profit increased 45% to $100 million (2006: $69 million), and headline earnings per share grew to 40.80 cents (2006: 26.9 cents). Datatec Limited (www.datatec.co.za)
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