Synnex has announced that it has reached agreement to acquire Datatec’s Westcon-Comstor Americas business. Terms include $500M in stock and $100M in cash at closing, and 10% ownership of Datatec’s Westcon EMEA and APAC businesses.
“We believe this is a unique opportunity that is transformational to Synnex and is aligned to our strategy of positioning the business to where technology is growing,” said Synnex president and CEO Kevin Murai. “Westcon-Comstor is a recognized leader in the security, UCC and networking space.”
For its fiscal year end ended February 28, 2017, the Westcon Americas business generated approximately $2.2 billion of revenue and approximately $89 million in EBITDA. In the first 12 months after close, the Westcon Americas business, excluding integration costs, transaction expenses and intangible amortization, is expected to be mildly accretive to Synnex non-GAAP EPS and then accelerate in year two.
“The Synnex culture is similar to Westcon-Comstor and I’m excited about the opportunity to grow our businesses together on a global scale,” said Jens Montanana, CEO of Datatec. “We share a common vision and strategic objective in addressing the global complexities and emerging demands facing our partners.”
The transaction is expected to close in the third calendar quarter of 2017, subject to the satisfaction of regulatory requirements and customary closing conditions.
The move strengthens the Synnex position in targeted market and also is believed to strengthen its Cisco alliance through existing Westcon partnerships.