Westcon deepens African footprint

Distributor looks to widen its reach in Africa with $7.2m acquisition

IT group Datatec has delivered on its pledge to boost its emerging markets footprint by acquiring African ICT distributor Sparnoon-Dynatech Group.

Datatec’s subsidiary Westcon Africa and Middle East has paid $7.2 million in cash for a 51 per cent stake in the company, in a move that will more than double its annual African revenues to $150m.

As part of the deal, Sparnoon-Dynatech has itself snapped up local rival JET Distribution. The combined outfit will extend Westcon’s presence in Botswana, Ghana, Kenya, Namibia, Nigeria, Tanzania and Uganda.

Datatec claimed the deal would make it the only ICT distributor operating in Africa with warehousing and logistics support in Africa, Europe, and Dubai.

Jens Montanana, chief executive at Datatec, said in a statement: “These acquisitions boost the Group’s presence in the emerging markets as well as increase our scale and enhance our product mix. Both are key priorities for Datatec.

“They also enhance Westcon’s industry leading position in the networking, security and convergence markets with its footprint reaching beyond South Africa into seven other African territories where there is significant growth potential.”

Sparnoon-Dynatech and JET represent Westcon’s third and fourth major purchases this year. The company recently closed its acquisitions of pan-European security distributor Noxs (CRN, 30 April) and UK voice distributor Crane (CRN, 4 May).