Westcon funds ready to rocket

Westcon Group has increased its scope for acquisitions in both Europe and the US by increasing its available funding from $204m to $360m

The networking distributor said that the move would hand it additional working capital facilities to support both organic and acquisitive growth, without having to go to parent Datatec.

Westcon's European subsidiary has boosted its banking facilities by $66m to $80m. In North America, the distributor has increased its war chest from $190m to $280m, with scope to add another $40m if necessary.

Clive Longbottom, analyst at market-watcher Quocirca, said: "This could be the first sign that Westcon is looking to split from the mothership and become completely independent. $80m isn't a huge amount when you look at the firms Westcon might buy, but it does give it more freedom."

David Pfaff, group finance director at Westcon, said in a statement: "This provides Westcon with considerable headroom to continue its rapid organic and acquisitive growth without calling on Datatec's resources."