Synnex Corp completes Westcon-Comstor deal

Synnex Corp completes Westcon-Comstor deal

Distribution giant finalises ten per cent regional stake for US$30 million

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.

Follow Us

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags SynnexWestcon-Comstor



The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments