DTC - Datatec Limited - Acquisition of 50.01% stake in Indian Distributor
11 September 2008 8:00
DTC
DTC                                                                             
DTC - Datatec Limited - Acquisition of 50.01% stake in Indian Distributor       
Datatec Limited                                                                 
(Incorporated in the Republic of South Africa)                                  
(Registration number: 1994/005004/06)                                           
ISIN: ZAE000017745                                                              
Share Code: DTC                                                                 
ACQUISITION OF 50.01% STAKE IN INDIAN DISTRIBUTOR                               
Datatec ("Datatec" or the "Group", JSE and LSE: DTC), the international         
Information and Communications Technology (ICT) group, has acquired a 50.01%    
stake in Inflow Technologies Private Limited ("Inflow"), an Indian ICT          
distribution business. The remaining 49.99% will continue be held by management 
and other existing shareholders.                                                
The acquisition of a 50.01% stake in Inflow, with its presence in nine key      
Indian cities, provides Datatec with an excellent entry point and initial       
footprint in India.  Inflow also has operations in Sri Lanka and Singapore.     
Inflow is a value-added distributor focusing on technology enablement and       
distribution of security, storage and networking products, solutions and        
services. Inflow has alliances with 22 global technology vendors including      
CheckPoint, Nokia, McAfee Ironport, Websense, Radware, NetApp and Quantum.   The
investment will also provide Datatec with a platform to add additional vendors  
and eventual incorporation into the Westcon brand.                              
Inflow achieved revenue of USD 32 million in the last financial year ending 31  
March 2008 and currently has over 130 employees.                                
Jens Montanana, CEO of Datatec commented:                                       
"India is a very large and fast growing market offering strong prospects in our 
sector with a lower cost of entry compared to many other developing markets and 
potentially higher returns and greater organic investment opportunities.  Our   
investment in Inflow is another important step in our international strategy to 
increase our exposure to the world`s major emerging markets which has recently  
seen our presence grow in markets such as Africa, the Middle East, Turkey and   
Brazil."                                                                        
Byju Pillai, CEO of Inflow Technologies commented:                              
"This investment along with access to global best practices of Datatec in value 
added distribution gives us greater ability to grow our market share, make      
alliances with new technology vendors and expand into new geographies."         
11 September 2008                                                               
Enquiries:                                                                      
Datatec Limited  (www.datatec.co.za)                                            
Ivan Dittrich - Group Finance          +27 11 233 1221                          
Director                                                                        
Wilna de Villiers - Group Marketing    +27 11 233 1013                          
Manager                                                                         
                                                                                
Dresdner Kleinwort                                                              
Simon Russell/James Rudd               +44 (0) 20 7623 8000                     
                                                                                
College Hill                                                                    
Adrian Duffield/Jon Davies (UK)        +44 (0) 20 7457 2020                     
Fred Cornet / Hayley Crane (SA)        +27 (0) 11 447 3030                      
Date: 11/09/2008 08:00:02 Produced by the JSE SENS Department.                  
The SENS service is an information dissemination service administered by the    
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or            
implicitly, represent, warrant or in any way guarantee the truth, accuracy or   
completeness of the information published on SENS. The JSE, their officers,     
employees and agents accept no liability for (or in respect of) any direct,     
indirect, incidental or consequential loss or damage of any kind or nature,     
howsoever arising, from the use of SENS or the use of, or reliance on,          
information disseminated through SENS.