Datatec Limited, an Information and Communications Technology (ICT) group, has announced the completion of 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 for $830 million in cash. This comes after Datatec announced its intention to sell the business in April 2017.
The maximum consideration of $830 million equates to an equity valuation of the total Westcon-Comstor division of $1,1 billion.
“This transaction crystallizes 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 globally.” said Jens Montanana, CEO at Datatec.
The company has indicated that its Board will be reviewing the various options for the "use and distribution of the cash proceeds" received once the transaction is concluded. The proceeds of the deal are made up of $630 million in cash on completion and up to $200 million payable as a cash earn-out, subject to Westcon Americas meeting certain agreed gross profit performance targets.
Datatec shareholders voted to approve the Transaction at the general meeting held on 30 August 2017.