Westcon has revealed that the reason why the company terminated its acquisition of networking distributor Landis was because it was overpriced.
Westcon, the distribution arm of Datatec, had signed a letter of intent earlier this year to acquire Landis, but last week announced it had terminated negotiations with immediate effect.
Chief executive Alan Marc Smith said: "The long and the short of it was the difference in value. We felt the business was worth X and they felt it was Y. We tried to narrow the gap, but decided to part company amicably.
"We said if Landis' business changes to the extent of justifying the extra value, or if circumstances change and it is willing to discuss our offer, we will go back to the negotiating table.
"If somebody else is willing to come along and pay the price Landis is asking for, in our minds they have overpaid, if that's what they think it is worth."
Smith added that Westcon still intends to pursue European expansion plans.
Meanwhile a representative from Landis told vnunet.com's sister publication Computer Reseller News that the company was already in negotiations with other parties.
"We are understandably disappointed at the outcome, but this has resulted in discussions with other interested parties. We want to continue our relationship with vendors as best we can and try to make this a successful time for us and our vendors. It is basically business as usual," said the representative.
Ingram Micro, rumoured to be strongly interested in Landis, has denied any type of involvement.
Meinie Oldersma, managing director of Ingram Micro UK, said: "Basically we have not had any negotiations with them and don't plan to."
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