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DTC - Datatec - Acquisitions Expand African Footprint
Datatec Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1994/005004/06)
ISIN: ZAE000017745
Share Code: DTC
("Datatec" or "the Company" or "the Group")
ACQUISITIONS EXPAND AFRICAN FOOTPRINT
Datatec, the international Information & Communications Technology (ICT)
group, announced today that its subsidiary, Westcon Africa Middle East
(Westcon), has acquired a 51% interest in the Sparnoon-Dynatech Group, an
established African ICT distributor. The vendors retain a 49%
shareholding, with a mechanism whereby up to 100% could be acquired over
5 years from completion. As part of the transaction, Sparnoon-Dynatech
Group has itself acquired 100% of JET Distribution, another African ICT
distributor. The consideration paid by Datatec was $7.2 million in cash.
These acquisitions are expected to be earnings accretive to Datatec.
Revenues of Westcon`s South African and African distribution operations
will increase from approximately $70 million to approximately $150
million on an annualised basis as a result of these acquisitions and
EBITDA will increase from $2.1 million to $3.6 million on an annualised
basis. Net cash acquired with these acquisitions is $0.3 million.
The acquisitions are in-line with the Group`s stated strategy to grow its
emerging market footprint. The acquisitions extend Westcon`s footprint
into Botswana, Ghana, Kenya, Namibia, Nigeria, Tanzania and Uganda and
positions the company as the only global ICT distributor operating on the
African continent with warehousing and logistics support in Africa,
Europe, and Dubai. Other key benefits include access to a broader and
more immediately available stock than that offered by competitors and the
addition of valuable market knowledge and experience of Africa`s rapidly
developing ICT market.
Jens Montanana, Datatec Group Chief Executive, commented:
"These acquisitions boost the Group`s presence in the emerging markets as
well as increase our scale and enhance our product mix. Both are key
priorities for Datatec. They also enhance Westcon`s industry leading
position in the networking, security and convergence markets with its
footprint reaching beyond South Africa into seven other African
territories where there is significant growth potential."
ENQUIRIES
Datatec Limited
(www.datatec.co.za)
David Pfaff, Group Finance +27 (0) 11 233 1221
Director
Wilna de Villiers, Group +27 (0) 11 233 1013
Marketing Manager
College Hill
Adrian Duffield/Corinna + 44 (0) 20 7457 2020
Dorward (UK press)
Nick Williams/Fred Cornet (SA +27 11 447 3030
press)
NOTES TO EDITORS
Datatec Limited 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 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 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).
Westcon Africa Middle East (Westcon)
Westcon, part of the Datatec Group, is a leading distributor of converged
communications solutions across sub-Saharan Africa. Westcon is made up of
three focused branded sales divisions: Comstor, Westcon and Scantec.
Through these divisions, Westcon is able to deliver more value to
resellers, system integrators and service providers through strong
relationships with vendors. Westcon is strategically aligned with leading
vendors that are shaping the future of the networking industry. These
include 3Com, Avaya, Cisco Systems, Juniper, Nortel, Symbol and Zebra as
well as other innovators of next-generation networking, scanning and
printing.
More About The Sparnoon-Dynatech Group
Established in 1994, the Sparnoon-Dynatech Group is one of the largest
ICT distributors in sub-Saharan Africa with offices in Kenya, Nigeria,
Tanzania and Uganda and logistic centres in the UK, Kenya and Dubai that
provide rapid response to pricing requests and first-class logistics
capabilities. It distributes Cisco, Dell, Epson, HP, Novell and
TallyGenicom. The company has most recently been awarded the Cisco
Distributor Partner of the Year and Cisco Value-Added Distributor of the
Year for 2006.
More About JET Distribution Ltd
JET Distribution is one of Africa`s leading distributors for Cisco, Dell,
Symantec and APC products. JET Distribution is currently the largest
Cisco Distributor in the Pan African Region.
Date: 13/06/2007 08:11:07 Produced by the JSE SENS Department. |