Datatec sells off a chunk of its business in radical restructure
Datatec, an international ICT company dual-listed on the JSE and London’s AIM, is currently in discussions to sell a major share of subsidiary Westcon’s operations in a deal with an $800 million price tag.
Pictured: Ivan Dittrich, Datatec CFO
While the exact reasons behind the sale are unknown, there is much consolidation currently taking place in the distribution world. It is also no secret that Weston-Comstor - which accounted for 75 percent of Datatec's $6.5 billion revenue earned in the year to February 2016 - has had financial difficulties of late.
In June 1998, Datatec spent $160 million purchasing a 92.5 percent stake in US distributor Westcon, allowing for the consolidation of Datatec's distribution businesses on five continents under the Westcon brand. This also boosted it from a regional player to an international one.