Datatec completes $800m Westcon-Comstor sale to Synnex

Deal sees Synnex take a 10 per cent stake in Westcon-Comstor's EMEA and APAC business

Datatec has closed the $800m (£618m) sale of its distributor Westcon-Comstor's Americas business to Synnex.

The deal sees US-based Synnex shell out $600m in cash for Westcon's Americas business, as well as $30m for a 10 per cent stake in Westcon's EMEA and APAC business.

A further $200m is payable based on the performance of the Americas business.

Jens Montanana, CEO of Datatec and Westcon-Comstor, said: "The successful completion of this transaction allows us to continue developing best-in-class programmes that accelerate business outcomes for all our partners, and better align our resources towards creating new opportunities for growth in the regions we serve together with Synnex."

The closure of the deal, which was first announced in June, saw parent company Datatec's shares rise 8.46 per cent on the London Stock Exchange's AIM.

Westcon's remaining EMEA and APAC business - dubbed Westcon-Comstor International - made up 52 per cent of the firm's $4.5bn revenue prior to the split.

The acquired Americas business will add over $2bn to Synnex's top line, $1.5bn of which comes from North America.

Synnex CEO Kevin Murai said: "I'm excited to welcome the Westcon-Comstor Americas team to the Synnex family.

"We believe this talented team and their recognised leadership in the security, UCC (unified communications and collaboration) and networking space will enhance our value proposition in the marketplace.

"The acquisition of Westcon-Comstor Americas continues to build on our strategy of positioning the business to where technology is growing."

As part of the deal Synnex has reserved the right to double its stake in Westcon-Comstor International to 20 per cent, and has first refusal on the entire business should Datatec decide to sell.