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Johannesburg - IT firm Datatec confirmed it will be selling its Westcon-Comstor business in North America and Latin America for R10.2bn, raising the company share price by 25%.
The company will sell Westcon-Comstor North America and Latam operations for up to R10.2bn, and 10% of the rest of Westcon-Comstor for R382.71m to Fortune 500 company Synnex Corporation.
READ: Datatec dominates thin trade on JSE
Datatec is an international ICT solutions and services group based in Sandton. It operates in over 70 countries across North America, Latin America, Europe, Africa, the Middle East and the Asia-Pacific region.
The company entered into a transaction agreement to dispose of its business for a total of about R10.5bn.
Datatec CEO Jens Montanana said it is an industry-transforming opportunity to partner with a strongly-growing and respected Fortune 500 corporation.
“Westcon-Comstor North America will benefit substantially from being part of a bigger business with a much larger addressable market – and so will our shareholders with our stake in Synnex,” he said.
READ: Weaker revenue, earnings hit SA IT firm Datatec
“The transaction also realises value for our shareholders as a result of the strategic relationship with Synnex through its shareholding in Westcon International,” he added.
“Post-transaction, the Westcon-Comstor businesses will work seamlessly together for our vendors and customers globally, enabling us to unlock further potential for Westcon International,” Montanana said.
Datatec's market value was around R11bn ($850 million) before the announcement, but its shares rose by 25% to R63.70 by 09:11 on the JSE.
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