Datatec has acquired Datastor (NZ), a New Zealand ICT distribution business, allowing subsidiary Westcon to add an additional operation in New Zealand, which will help consolidate its existing business.
The cash consideration has been funded from Westcon Group's resources.
Datastor is a value-added distributor focusing on technology enablement and distribution of storage and virtualisation products, solutions and services. It has alliances with more than 20 global technology vendors including VMware, EMC, Seagate, APC, IBM and Juniper.
The investment will also provide Westcon Group with a platform to extend existing global and regional vendor relationships through an increased customer footprint and market presence.
For the year ending 31 March 2010 Datastor has budgeted revenues of NZ$96-million (about $69-million).
Jens Montanana, CEO of Datatec, comments: "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."
Dave Rosenberg, CEO of Datastor, adds: "Westcon Group's global reputation is well regarded in the region and we are confident that this transaction will result in substantially increased support and solutions availability for Datastor's customer base."
Earlier this week, Datatec issued a trading update, confirming an earlier profit forecast for the full 2010 financial year of revenues of between $3,7-billion and $4-billion, underlying earnings per share of approximately 29 US cents and earnings and headline earnings per share of approximately 23 US cents.
The group advises that revenues of approximately $1,8-billion were generated during the period, with gross margins remaining stable. The strong cash generation experienced during the previous financial year also continued.