DTC
DTC
DTC - Datatec Limited - Correction to third paragraph: 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")
CORRECTION TO THIRD PARAGRAPH: 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 Technologia 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 $1.0 million for 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."
3 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: 03/10/2007 07:06:58 Produced by the JSE SENS Department.
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