Datatec ("Datatec", "the group", JSE and LSE: DTC) announces that its subsidiary Westcon Group European Operations ("Westcon"), has entered into a joint venture arrangement in Turkey with Indeks Bilgisayar Sistemleri M"uhendislik Sanayi Ve Ticaret A.S ("Index"), a company listed on the Istanbul Stock Exchange.
As part of the transaction, Westcon has acquired 50% of the issued share capital of Neteks Iletisim "Ur"unleri Dagitim Anonim Sirketi ("Netex"), with the remaining 50% being held by Index.
Netex, which generated $50 million of revenue during its last financial year, is a networking and security distributor whose vendor relationships include Cisco, Nortel, HP, 3Com, Check Point and others. Netex has an advanced logistics capability, along with many years of experience distributing products in Turkey.
The consideration for the acquisition will be settled in cash and will be effective from 23 July 2007.
Willem de Haan, vice-president of business development for Europe & Middle East of Westcon Group, comments: "By establishing operations in Turkey, we continue to leverage our global relationship with Cisco and Nortel while bringing greater opportunity to resellers in that region. Our branded vendor-focused sales programmes, which have already demonstrated success around the globe, will help resellers in Turkey to become more successful in selling advanced technology solutions. We look forward to actively engaging an exciting new reseller base."
Jens Montanana, chief executive of Datatec, comments: "Our investment in Netex is yet another step in our overall objective of increasing our exposure to the world's major emerging markets. As a result of the joint venture, Westcon Group becomes the leading networking and security distributor carrying Cisco and Nortel products in that region. With a GDP of $358.5 billion and population of over 71 million, we consider Turkey an important emerging market where networking technology will play an increasingly important role."
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Datatec is an international information & communications technology (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), IT infrastructure solutions and network integration (Logicalis) and strategic telecommunications consulting (Analysys Mason Group). Datatec is registered in South Africa and its shares are listed in Johannesburg and London. The group has 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: $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).
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