subscribe: Daily Newsletter

 

Westcon expands in Latin America

0 comments

Datatec subsidiary Westcon will acquire the Latin American and Iberian multinational security, virtualisation and data centre distributor Afina Group for about E50-million.

The transaction will be concluded via the acquisition of Afina’s Panamanian holding company GLS Software from Araguaya.

The acquisition will expand Westcon’s presence in Latin America, the Caribbean, Europe, and North Africa. It also broadens and deepens Westcon’s product portfolio, through the addition of new (or stronger) relationships with strategic vendors such as VMware, Riverbed, Symantec and Citrix.

The deal will be settled by the payment of E30-million in cash funded from new loan finance and E10-million in Datatec shares. The remaining E10-million will be paid in cash, in two payments of up to E5-million each in 2013 and 2014 subject to Afina meeting certain EBITDA performance conditions for each of the two years ending 31 December 2012 and 31 December 2013.

The effective date of the transaction is today (2 July 2012).

Jens Montanana, Datatec’s chief executive comments: “We identified Afina more than two years ago as a potentially game changing opportunity for Westcon.

“The transaction adds major high growth emerging markets to Westcon’s geographic footprint and cements its leadership role as the world’s premier distributor of networking and security products. It is a key milestone in delivering on our strategic medium term goal of reaching $1-billion of revenues in security related product solutions, and also brings software virtualisation and data centre products to Westcon’s solution set.

“This acquisition creates unrivalled coverage throughout the Americas, as Westcon gains an immediate on-the-ground presence in Argentina, Chile, Colombia, Venezuela and Peru in addition to coverage across Central America and the Caribbean. It also adds a significant presence in Mexico which will boost Westcon’s recently established operations there. Afina’s operations in Brazil will augment Westcon’s existing strong presence in that market.

“Latin America is now entering a robust period of IT spending, with analysts estimating that the region will generate more than $310-billion in IT spending in 2012.  With the acquisition of Afina, Westcon is very well positioned to capture this momentum.”

Afina operates in 12 countries across Latin America, Europe, North Africa and the Caribbean (including Brazil, Mexico, Spain, Portugal, France, and Morocco), with a primary focus on the distribution of security and data centre software. Afina’s vendor portfolio is complementary to Westcon’s existing portfolio, but significantly adds new vendor relationships and expertise in security, virtualisation and data centre technologies, as well as a strong services offering.

Afina was founded in 1990 and is headquartered in Madrid and Miami.  It employs over 400 perople and expects revenues this financial year to approach $300-million.