South African IT group, Datatec has acquired a 50,01% stake in Indian distributor Inflow Technologies for an undisclosed sum.
The remaining 49,99% of shares will continue to be held by Inflow management and other existing shareholders.
Inflow, which achieved revenues of $32-million in its last financial year, has a presence in nine Indian cities and operations in Sri Lanka and Singapore.
Datatec says the acquisition provides it with "an excellent entry point and initial footprint in India" and provides it with "a platform to add additional vendors and eventual incorporation into the Westcon brand".
Inflow is involved in the distribution of security, storage and networking products, solutions and services, and counts 22 global technology vendors within its current stable.
"India is a very large and fast growing market offering strong prospects in our sector with a lower cost of entry compared to many other developing markets and potentially higher returns and greater organic investment opportunities," says Jens Montanana, CEO of Datatec. " Our investment in Inflow is another important step in our international strategy to increase our exposure to the world’s major emerging markets which has recently seen our presence grow in markets such as Africa, the Middle East, Turkey and Brazil.”
Byju Pillai, CEO of Inflow Technologies, says: “This investment, along with access to global best practices of Datatec in value-added distribution, gives us greater ability to grow our market share, make alliances with new technology vendors and expand into new geographies.”