The move comes into effect on January 26.
Cellnet, CEO, Stuart Smith, told ARN it was a mutual decision between the two companies to discontinue the relationship.
“SanDisk are looking to change their distribution strategy and that’s in conjunction with our focus on the other two brands in a longer term partnership,” Smith said.
It anticipates the move will not have an impact for the first half-year ending December 31 and expects a further release of working capital of about $500,000 to be made.
In June last year, Cellnet wound up its IT division and sold its IBM business to Avnet.