DATATEC LIMITED - Completion of Westcon-Comstor SYNNEX transaction for up to $830m in cash
4 September 2017 7:05
DTC 201709040002A
Completion of Westcon-Comstor SYNNEX transaction for up to $830m in cash

Datatec Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1994/005004/06)
Share code: DTC
ISIN: ZAE000017745

Completion of Westcon-Comstor SYNNEX transaction for up to $830m in cash
Datatec Limited (JSE/AIM: DTC, “Datatec” or “the Group” ), the international Information and Communications
Technology (ICT) group, has completed the sale of its Westcon-Comstor business in North America and Latin
America (“Westcon Americas”) and of 10% of the remaining part of Westcon (“Westcon International”) to SYNNEX
Corporation (NYSE: SNX) (“SYNNEX”), together “the Transaction”.

The proceeds of the Transaction comprise US$630 million in cash on completion and up to US$200 million
payable as a cash earn-out, subject to Westcon Americas meeting certain agreed gross profit performance

The maximum consideration of $830 million equates to an equity valuation of the total Westcon-Comstor division
of $1.1 billion.

The Board will be reviewing options for the use and distribution of the cash proceeds received on closing of the

As previously communicated to shareholders, the Board intends to retain US$130 million for various operational
and working capital and expansion funding requirements. The Board will consider returning the majority of the
remaining US$500 million to shareholders by way of share repurchases and / or a specific dividend, but in the
meantime the proceeds will be retained in US Dollars.

The Board has previously communicated that any cash payments received on the earn-out will be returned to

As stated on 6 June 2017 when the Transaction was announced, it provides a unique opportunity for Westcon
International to partner with a leading global distribution business and enables it to complete its transformation
process and improve operating efficiency, so enhancing its value in the medium term.

Datatec shareholders voted to approve the Transaction at the general meeting held on 30 August 2017 and all
other conditions precedent to completion of the Transaction have been satisfied.

Jens Montanana, Datatec CEO, said:

“This transaction crystallises excellent value for our shareholders - we will revert to shareholders
with our plans for the use and distribution of the cash in due course.

“The strategic partnership between Westcon International and SYNNEX will provide significant
growth opportunities for both businesses, while working together to serve vendors and customers


 Datatec Limited (
 Jens Montanana, Chief Executive Officer                                         +44 (0) 1753 797118
 Ivan Dittrich, Chief Financial Officer                                          +27 (0) 11 233 3301
 Wilna de Villiers, Group Investor Relations                                     +27 (0) 11 233 1013

 Jefferies International Limited – Nominated Adviser and Broker
 Nick Adams/Simon Hardy                                                         +44 (0) 20 7029 8000

 Instinctif Partners
 Frederic Cornet/ Keagile Makgoba (SA)                                          +27 (0) 11 447 3030
 Adrian Duffield/Chantal Woolcock (UK)                                          +44 (0) 20 7457 2020

Sponsor: Rand Merchant Bank (a division of FirstRand Bank Limited),
1 Merchant Place, Corner Fredman Drive and Rivonia Road, Sandton
4 September 2017

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