DTC
DTC
Datatec"s Westcon Group Acquires Distribution Operations Of Ronco Communications
And Electronics
DATATEC LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1994/005004/06)
ISIN: ZAE000017745
Share Code: DTC
("Datatec")
PRESS RELEASE - Datatec"s Westcon Group acquires Distribution Operations of
Ronco Communications and Electronics
Datatec announced today that Westcon Group has acquired the distribution arm of
Ronco Communications and Electronics for an undisclosed sum. The successful
acquisition will transform Westcon into the number one distributor of Nortel
voice and data products in North America. Nortel is now Westcon Group"s second
largest vendor by revenue.
Following the acquisition, Westcon Group North America is well placed to provide
more broad-based solutions in convergence, a high growth area of networking. The
group is also poised to take a leadership position in voice and data
distribution in North America. The deal is testament to Weston"s ongoing
commitment to Nortel.
The new operation, renamed Ronco Distribution, will be managed by Kurt Ruesch,
former president, distribution for Ronco.
Westcon Group"s acquisition follows four months after it secured a US$150
million working capital facility to finance the operations of the group"s three
US operating divisions, Comstor, Voda One and Westcon as well as its business in
Canada. The group also secured a US$40 million second lien term loan to provide
additional long-term capital to fund growth of the Westcon businesses.
Sandton
2 May 2006
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 02/05/2006 01:06:49 PM Produced by the JSE SENS Department
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