Westcon-Comstor to sell its Americas business, minority stake in its international business
Proposed transaction with SYNNEX to ensure a unified go-to-market under the Westcon-Comstor brand
Value-added distributor Westcon-Comstor, has announced that its parent company, Datatec Limited, has entered into a definitive agreement to sell its North America and Latin America distribution business to SYNNEX, a Fremont, California-based company, as well as a minority equity share in its "International" operations comprised of Europe, Middle East and Africa (EMEA) and Asia-Pacific (APAC).
In addition, Datatec will acquire a minority equity share in SYNNEX.
The companies will operate under a single go-to-market structure, ensuring that vendor partners and solution providers receive the same levels of service with no disruptions.
According to the Westcon-Comstor, the agreement also allows Westcon-Comstor International to better align its regional resources and seek new opportunities for growth.
Both SYNNEX and Datatec will have shareholder interest in the Westcon-Comstor Americas and the Westcon-Comstor International businesses as well as representation on each other's board of directors, ensuring strategic and operational alignment.
"Our customers gain access to complementary technology solutions and business services that open up new opportunities to accelerate growth," Dolph Westerbos, CEO of Westcon-Comstor, said. "SYNNEX is an undisputed leader in IT distribution, particularly in North America. Their breadth of customers and technology solutions will be a tremendous benefit to our portfolio. This transaction not only brings together two complementary businesses, but also two similar cultures around employee and customer success."
Both entities expect to benefit from Westcon-Comstor's recent completion of its global business transformation: an SAP implementation and business process outsourcing across five continents, intended to deliver consistent and improved customer services while generating significant efficiencies.
Kevin Murai, President and CEO of SYNNEX, said: "Westcon-Comstor has developed a successful business around the world with a very deep and talented team. We are excited to welcome the Americas organisation to the SYNNEX family and look forward to leveraging their global expertise to serve our customers in new and innovative ways."
The transaction is expected to close in the third calendar quarter of 2017, subject to the satisfaction of regulatory requirements and customary closing conditions. Until the transaction is completed, the companies will continue to operate independently.