Synnex Corporation has completed plans to become a minority shareholder in the Asia Pacific business of Westcon-Comstor, finalising a ten per cent stake for US$30 million.
In addition to the regional agreement, the distribution giant also wrapped up the acquisition of the Americas divisions - spanning North America and Latin America - in a deal valued at US$800 million.
As reported by ARN, the local and regional business of Westcon-Comstor will remain under Datatec ownership, alongside Europe, the Middle East and Africa (EMEA) which also follows the same shareholder agreement.
Specifically, US-based Synnex - which operates independently from the Taiwan-headquartered company operating across Australia and New Zealand (A/NZ) - paid for minority ownership of Datatec's Westcon APAC and EMEA divisions.
The proceeds of the transaction comprise US$630 million in cash on completion and up to US$200 million payable as a cash earn-out, subject to Westcon Americas meeting certain agreed gross profit performance targets.
Datatec shareholders voted to approve the transaction at the general meeting held on 30 August 2017, with all other conditions of the agreement now completed.
“This transaction crystallises excellent value for our shareholders - we will revert to shareholders with our plans for the use and distribution of the cash in due course,” Datatec CEO Jens Montanana said.
“The strategic partnership between Westcon International and Synnex will provide significant growth opportunities for both businesses, while working together to serve vendors and customers globally.”
From a local and regional perspective, the deal also includes an option to acquire another ten per cent within 12 months upon completion of the transaction.
Headquartered in California, USA, Synnex Corporation is a Fortune 500 company founded in 1980, specialising in original equipment manufacturers, software publishers and reseller customers.
While the distributor is loosely connected with Synnex Technology International Corporation - which is the parent company of Synnex A/NZ - both operate independently.