DTC
DTC
DTC - Datatec Limited - Westcon Appointed as Cisco Distributor in Brazil;
Provides Platform for further rapid growth in South America
DATATEC LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1994/005004/06)
ISIN: ZAE000017745
Share Code: DTC
WESTCON APPOINTED AS CISCO DISTRIBUTOR IN BRAZIL; PROVIDES PLATFORM FOR FURTHER
RAPID GROWTH IN SOUTH AMERICA
Datatec, ("Datatec" or the "Group", JSE and LSE: DTC), the international
Information and Communications Technology (ICT) group, has today added a full
service capability to distribute and support Cisco products and services to its
established Westcon operations in Brazil. This new capability has the potential
to grow rapidly and report additional revenues of over $100 million over the
next two years.
Westcon is making an initial investment of $5 million. The addition of a Cisco
Enterprise and SMB solutions distribution business has been fast tracked by the
recruitment of an experienced team of over 30 Cisco-trained specialist technical
and sales staff, most from a leading local Cisco distribution partner. The team
has the proven Cisco skills and the vital customer relationships to ensure
sustained success and growth.
This development is an important part of the Group`s strategy to accelerate its
business in key emerging markets and developing countries. Along with the
recent expansion of Westcon`s Cisco distribution business into such markets as
Turkey, Westcon is now adding its extensive Cisco expertise to its operations in
one of the world`s fastest growing economies.
Westcon Brazil, established nine years ago, has a recognized presence throughout
Brazil serving integrators, resellers and service providers with networking,
security and convergence technologies from multiple vendors.
Westcon, which is one of Cisco`s three `broad-based` global distributors, will
immediately leverage its existing infrastructure and global solutions programmes
to support the launch of this new business and provide rapid market development.
Jens Montanana, Chief Executive of Datatec, commented:
"We have been exploring opportunities with Cisco to develop our businesses
across South America, to complement our strong representation in North America
and build on our extensive experience in Brazil and recent acquisition of the
Cernet business in the wireless and security markets across the region. This
investment provides the platform to meet our joint aims of developing both new
and existing business in South America`s largest economy.
"For us at Datatec, it is a very important step with Cisco in this region and
the Group`s largest organic initiative to date. It is a tremendous opportunity
to drive our development in the first of the BRIC countries, with a potential
for good, rapid margin growth."
10 December 2007
Enquiries
Datatec Limited (www.datatec.co.za)
David Pfaff, Group Finance Director +44 (0) 17537 97111
Wilna de Villiers, Group Marketing Manager +27 (0) 11 233 1013
Dresdner Kleinwort
James Rudd +44 (0) 20 7475 7006
College Hill
Adrian Duffield/Jon Davis +44 (0) 20 7457 2020
Nick Williams/Fred Cornet (SA press) +27 11 447 3030
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 more than 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 restated: $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: 10/12/2007 09:00:02 Produced by the JSE SENS Department.
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