Datatec subsidiary Westcon Group will acquire security products distributor NOXS Europe and NOXS Ireland for a cash consideration of 53.25 million euros - approximately R500 million.
In an illustration of the financial effects of the deal, the JSE- and London Stock Exchange-listed Datatec this morning said it expected the acquisition to push earnings per share and headline earnings per share up by about 13%.
Datatec says NOXS - a European distributor of security products and services with offices in France, Belgium, The Netherlands, Germany, the UK, Ireland and Italy - generated more than $220 million (R1.5 billion) in revenue for the year ended 31 December 2006, which was "considerably more than Westcon's comparable revenues from security-related products in Europe".
Datatec CEO Jens Montanana says this is a strategic acquisition for the company.
"It immediately positions Westcon as a leading multinational security distribution company, and provides substantial additional scale in Europe. Significantly, this acquisition also gives Westcon access to new vendors, as well as providing an enlarged footprint to distribute its existing product lines into new markets and territories.
"The substantial increase in scale and size, which NOXS brings, would not have been possible to achieve through organic growth alone," he adds.
The deal is awaiting European merger approval, which is expected in early April.
Share