Comztek has coverage in 26 countries in Africa 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 in excess of R1 billion and more than 200 employees, and based in Johannesburg, its activities will compliment to those of Datatec´s Westcon business.
Datatec will acquire 100% of Comztek from its current shareholders who include JSE-listed Mustek and various members of the management team through family and employee
The acquisition will be settled by the payment of R40 million in cash funded from new loan finance (R27.4 million to Mustek, R12.6 million to the Management Sellers) and R40 million in Datatec shares (R12 million, to Mustek, R28 million to the Management Sellers).
A further R8 million will be paid in cash to the Management Sellers, subject to Comztek meeting certain EBITDA performance conditions for the 6 months ending 31 December 2012.
The Comztek business will be integrated with Westcon South Africa in an internal
reorganisation which will involve Datatec´s BEE partner, the Mineworkers Investment Corporation (MIC) and several members of the Comztek management team subscribing for shares in WSA to increase MIC´s share of the combined business to 40%, and Comztek
management´s share to 9.9%, leaving Datatec, through its subsidiary Westcon Emerging Markets Group (Pty) Ltd with a
shareholding of 50.1% (“the reorganisation”).
Jens Montanana, Datatec’s chief executive said: “Comztek brings a complimentary vendor portfolio that has minimal overlap with Westcon’s own vendor portfolio, thereby adding strong new vendor relationships, along with highly skilled and experienced staff that will allow us to widen our offering to our respective customer bases.
“With revenues across Africa exceeding $300m the combined business will boast the scale and addressable market to attract new vendors wishing to create a regional presence.
“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.”