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DTC - Datatec - Acquisition Extends Distribution Business In Central And
South America
DATATEC LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1994/005004/06)
ISIN: ZAE000017745
Share Code: DTC
("Datatec")
ACQUISITION EXTENDS DISTRIBUTION BUSINESS IN CENTRAL AND SOUTH AMERICA
Datatec Limited ("Datatec", "the Group", JSE and LSE: DTC) announces that
its subsidiary Westcon Group, Inc., ("Westcon"), has acquired the assets
of Cernet of America, Inc. and its related Mexican company, Cernet
Tecnologia en Telecommunicaciones, S.A. de C.V. "Cernet" for a maximum
cash consideration of $4.65 million.
Cernet is a value-added distributor known for its strength in Wireless
Networking, LAN/WAN, and Security Systems and has a customer base of over
300 resellers throughout the CALA (Caribbean and Latin America) region.
Cernet has been serving customers in this region since its founding over
15 years ago. Its vendors include Motorola, Alcatel-Lucent, Foundry,
Proxim Wireless and many others.
Cernet reported EBITDA of approximately $4.9 million and $1.0 million in
the year ended 31 December 2006. The net assets of the business are
approximately $1.0 million at acquisition. The business is being
acquired on a debt/cash free basis. The consideration comprises an
initial cash payment of $3.45 million with an additional earn-out of up
to $1.2 million based on the performance of the business over the next
six months.
Jens Montanana, Chief Executive of Datatec, comments:
"This is another extension of our businesses into more emerging markets
economies for Westcon, based on our expertise and focus on the wireless
technology and security sectors."
2 October 2007
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
Dresdner Kleinwort
James Rudd +44 (0) 20 7475 7006
College Hill
Adrian Duffield/Corinna + 44 (0) 20 7457 2020
Dorward (UK press)
Nick Williams/Fred Cornet (SA +27 (0) 11 447 3030
press)
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).
Westcon Group, Inc. is the leading specialty distributor in networking,
security, mobility and convergence for leading technology vendors,
including Cisco, Nortel and Avaya, Inc. Through its Westcon, Comstor and
Voda One business practices, Westcon Group sells products and services to
resellers, systems integrators and service providers. Westcon Group has
particular expertise in the convergence of voice, data and video
applications and technologies, including voice-over Internet protocol, or
VoIP, security for networking and communications systems, remote access,
Internet and e-business, virtual private networks, videoconferencing and
wireless connectivity. For more information, visit www.westcongroup.com.
Date: 02/10/2007 17:45:01 Produced by the JSE SENS Department.
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