Datatec buys pan-African ICT distributor Comztek for up to EUR 8mn.

By bne IntelliNews December 3, 2012
South African information and communications technology (ICT) group Datatec said it has agreed to buy 100% of Comztek Holdings, a major ICT and networking distributor in Africa, in a cash and share deal worth up to ZAR 88mn (EUR 7.6mn), in a bid to strengthen its footprint on the African continent. The sellers of Johannesburg-based Comztek include South African technology group Mustek, which holds 41.84%, and various members of the management team through family and employee trusts. Datatec will settle the acquisition by paying ZAR 40mn in cash, funded from a new loan, and ZAR 40mn in new Datatec shares. A further ZAR 8mn will be paid in cash to the management sellers, subject to Comztek meeting certain EBITDA performance conditions for the six months to end-December 2012. The deal is subject to regulatory and other approvals. Comztek is a leading systems distributor with coverage in 26 African countries with operations in South Africa, Namibia, Zambia, Kenya and Mauritius. It distributes a range of hardware and software products focused on networking, security and storage, datacentre and software infrastructure and unified communications solutions. Comztek has annual revenues of over ZAR 1bn and more than 200 employees. After the completion of the deal, Comztek will be integrated into Datatecs Westcon business. Africa remains a key growth market for us and this deal significantly expands our footprint and offering into many new markets. As the continent continues to develop our solutions and services will play an important part in the rapid adoption of more advanced IT and telecoms infrastructure, Datatec's CEO Jens Montanana said in a statement. Datatec has been actively seeking acquisitions to grow its businesses. In November it announced that that its subsidiary Logicalis, which provides IT solutions and managed services, has bought the Colombian and Ecuadorian operations of Cibercall for an undisclosed sum. In July, Dataecs networking technology solutions distribution subsidiary Westcon bought Latin American and Iberian multinational security, virtualisation and data centre distributor Afina Group for up to EUR 50mn and also Austrian value added security distributor Triple AcceSSS IT GmbH along with its Swiss subsidiary for an undisclosed sum. In May, Logicalis bought Australian IT solutions provider Corpnet. In February, Westcon bought Indonesian IT security and networking distributor Netpoleon. Datatec provides ICT products, solutions and services in over 40 countries worldwide.
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