DTC
DTC
DTC- Datatec- Acquisition of US and UK IP-Video and audio conferencing products
distributor for $25 Million
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")
ACQUISITION OF US AND UK IP-VIDEO AND AUDIO CONFERENCING PRODUCTS DISTRIBUTOR
FOR $25 MILLION
Datatec Limited ("Datatec", "the Group", JSE and LSE: DTC) announces that its
subsidiary Westcon Group, Inc., ("Westcon"), has acquired the assets of ReView
Video LLC ("ReView"), a leading US distributor of audio, network,
videoconferencing and VoIP solutions, from ReView Video LLC for a cash
consideration of $25 million. The purchase price will be paid entirely from
Westcon`s cash resources and the transaction is expected to be accretive in the
current financial year.
ReView Video is a leading US value added distributor of audio, network,
videoconferencing and VoIP solutions with offices in Chicago, Illinois. ReView
has focused on building a world class team of sales and service professionals to
support its customers. This team has combined expertise in sales, service,
support, training, maintenance and operations. Having previously distributed
solutions for multiple vendors, Review became a Polycom exclusive distributor at
the end of 2006 and is one of the largest Polycom distributors in the United
States. ReView also has rights to sell Polycom`s IP-video and audio
conferencing products in the UK. The worldwide market for Polycom products is
growing rapidly as video conferencing solutions become an integrated component
of enterprise communication and as environmental considerations drive customers
to consider alternatives to reduce emissions.
ReView generated revenue and EBITDA of approximately $57 million and $4.0
million respectively in the year ended 31 December 2006. The net assets of the
business were approximately $1.2 million as at 31 December 2006. The business
is being acquired on a debt/cash free basis. The consideration comprises $25
million in cash at closing (subject to certain escrow/witholding retentions).
Jens Montanana, Chief Executive of Datatec, comments:
"This is an important strategic acquisition for Datatec as it immediately
positions Westcon as a leading voice and videoconferencing distribution company.
Significantly, this acquisition makes Westcon one of the leading Polycom
distributors in the world. ReView`s strength in IP-based video conferencing
products and services, combined with Westcon`s focused technology solutions and
operational infrastructure, represents an enormous opportunity for their
customers."
Enquiries:
Datatec Limited (www.datatec.co.za)
David Pfaff, Group Finance Director +27 (0) 11 233 1221
Wilna de Villiers, Group Marketing +27 (0) 11 233 1013
Manager
Dresdner Kleinwort
James Rudd +44 (0) 20 7475 7006
College Hill
Adrian Duffield/Corinna Dorward (UK +44 (0) 20 7457 2020
press)
Nick Williams/Fred Cornet (SA press) +27 11 447 3030
18 July 2007
Note 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).
Date: 18/07/2007 08:00:01 Produced by the JSE SENS Department. |