Cashed-up South African networking and distribution company Datatec last week paid $160 million for global networking distributor Westcon. But the twist is that Datatec is quite happy to sit on the sideline and let Westcon leverage its well-regarded brand name.
In fact, the Datatec distribution companies will operate under the Westcon name worldwide with Westcon set to operate as a subsidiary of Datatec on the completion of the deal.
According to Westcon's Australasian manager Duncan Craven, the Datatec deal confirms Westcon's position as the only global distributor with a presence in all five continents. However, Westcon can expect stiff competition for these bragging rights from the likes of Ingram Micro.
Speaking to ARN last week, Craven was confident the Datatec capital injection would give his company the green light to bolster staff numbers in Australia and enhance its distribution infrastructure. It is an added bonus for Westcon, considering the distributor is delivering 35 per growth year on year, Craven claimed.
"Westcon is now in a position to increase its staff numbers by at least 20 per cent," Craven said. "We are interviewing for positions in training, technical support and sales right now."
"While Datatec will have limited involvement in Westcon's Australian activities, the distributor's association has gone a long way towards enhancing Westcon's status within the Australian vendor community.
"Importantly, from a global distribution perspective, the Datatec acquisition now means that Westcon can claim the right to be the only global distributor to operate on five separate continents," Craven said.
Craven added that Datatec's capital investment and distribution expertise would also facilitate the company's drive to deploy EDI and e-commerce applications.
Based in Johannesburg, Datatec (www.datatec.co.za) distributes desktop hardware along with software and Web-enabled productivity products.