Reseller News

Westcon Group’s owner buys Datastor

In a move designed to extend its reach in data centres and virtualisation, Westcon Group's parent company Datatec has acquired Auckland-based distributor Datastor.

Dave Rosenberg will remain in his role as CEO and the existing management team is not expected to change. Rosenberg now reports to Westcon Group Asia executive vice president Wendy O’Keeffe.

Up until 31 March 2010 the businesses will operate independently. Rosenberg says on April 1 his company intends to roll the Westcon business into Datastor as a networking division, which will be headed by the existing Westcon management team.

Westcon Group sales manager Dayle Barnes will be heading up Datastor's Networking division and will be a strategic part of the leadership team, says Rosenberg.

O'Keeffe says the intention at this stage is keep Westcon Group's office in central Auckland. "As part of the acquisition we’ve taken over the lease of the Datastor building because it’s purpose built for distribution. We’ve got a remaining lease on our office in the city but come April 1, it’s Dave’s decision what he wants to do."

No redundancies are planned. “We’re both growing as businesses here. There’s very little or no crossover," says Rosenberg. Westcon Group has seven staff locally while Datastor has 72.

Datastor executive director Vic Dickerson, who retires today, says the two companies first held talks two years ago.

“We really got serious two months ago and completed the deal in two months. We chose them as quite a few other distributors had contacted us about buying Datastor. The fit wasn’t there [with other distributors] but it’s going to be fantastic to see Datastor grow with Westcon."

Rosenberg wouldn’t reveal Datastor’s year on year revenue. “Up until today we were a privately owned company so we don’t normally disclose revenue numbers. That will change moving forward. We are on track to achieve our numbers by March 31.”

There are no plans to rebrand the Datastor logo. "At some stage you will expect to see Westcon integrate into the brand but the plans are to keep the Datastor brand the way it is," he says.

According to Rosenberg, the acquisition is a positive development for vendors, staff and resellers.

“We are confident that this transaction will result in significant business and opportunity growth. After the acquisition, its will be business as usual. We do not anticipate any organisational changes to the business, and we will work very closely with Westcon to ensure a smooth transition.”

O’Keeffe says her company has been on an aggressive growth trajectory in the Asia Pacific region.

“Our acquisition of Datastor not only brings us an expanded footprint into New Zealand – a very important emerging market to us- but also strengthens our portfolio in data centre, virtualisation and storage technologies.”

Westcon will take on all of Datastor’s agencies which includes IBM and Riverbed. The two companies share three agencies, EMC, Aruba and Juniper.

O'Keefe says there won't be many changes for Datastor to come into line with Westcon. "Datastor operate a fairly sophisticated system and facility and we don't want to disrupt that. We’ll assess [on April 1] as a joint organisation on what we do in terms of leveraging our global systems.”

Datatec's website says it has acquired Datastor in New Zealand on behalf of its subsidiary Westcon.

Datatec CEO Jens Montanana says the Asia Pacific market has been the source of significant growth for Datatec over the past decade.

"This acquisition allows Westcon Group to extend its reach in the region and to service vendor demand by providing consolidated distribution channels and cross border transactional capability for partners in Asia Pacific.”