American distributor SYNNEX Corporation and South African group Datatec have unveiled a definitive agreement in which SYNNEX will acquire Datatec's Westcon-Comstor Americas business and become a minority shareholder in Datatec's Westcon EMEA and APAC businesses. "We believe this is a unique opportunity that is transformational to SYNNEX and is aligned to our strategy of positioning the business to where technology is growing. Westcon-Comstor is a recognized leader in the security, UCC and networking space", stated Kevin Murai, President and CEO of SYNNEX Corp. "The Westcon-Comstor brand has been built over time by a very deep and talented team and we are excited to welcome the Americas team to our family."
Jens Montanana, CEO of Datatec, stated: "I'm proud of our team and the business they have built over the past thirty years. The SYNNEX culture is similar to Westcon-Comstor and I'm excited about the opportunity to grow our businesses together on a global scale. We share a common vision and strategic objective in addressing the global complexities and emerging demands facing our partners."
Here are the transaction details and the impact of the acquisition to Consolidated SYNNEX Corporation Financials:
"We are pleased to welcome a long-term shareholder like Datatec Ltd. The ownership structure serves us well as it aligns our collective long-term goals", stated Kevin Murai, President and CEO of SYNNEX Corp. "The composition of this transformative acquisition enables SYNNEX to further invest in long-term strategies to grow and diversify our business. Mr. Montanana brings to our board deep practical knowledge in doing business beyond North America."
For its fiscal year end ended February 28, 2017, the Westcon Americas business generated approximately €2B of revenue and approximately €82m in EBITDA. In the first 12 months after close, the Westcon Americas business, excluding integration costs, transaction expenses and intangible amortization, is expected to be mildly accretive to SYNNEX Non-GAAP EPS and then accelerate in year two. The transaction is expected to close in the third calendar quarter of 2017, subject to the satisfaction of regulatory requirements and customary closing conditions. Until the transaction is completed, the companies will continue to operate independently.
Distributor Westcon has revealed a business process outsourcing (BPO) firm with operations in Romania will take charge of some of its EMEA finance and operations functions. Parent company Datatec announced yesterday that 300 of Westcon's 1,900 EMEA staff would be affected by a "BPO transformation" of its EMEA operations.
Westcon senior vice president David Grant revealed a phased migration of the functions in question will occur between now and mid-2017 and insisted service levels for resellers would not be affected. Although Grant was not in a position to divulge Westcon's BPO partner, he described it as a global outfit "in the top-right of the Gartner Magic Quadrant". "We separated our activities into those we see as transactional and those that add value to the customers and vendors," he said. "Anything that is very transactional we have decided to outsource to another organisation as it gives us scale and efficiency."
The outsourcing project will run alongside Westcon's impending European implementation of a global SAP project, Grant said, adding that affected employees may be offered other roles in the organisation. "It is not a case of everything changing on day one," he said. "Where roles are affected we will give people significant advance notice, as it's the responsible thing to do. We are growing, and while some transactional roles will be eliminated from the business, some new opportunities will be created so we will take as much time as we can to retrain and redeploy staff where it is appropriate to us."
Westcon, which operates through the Comstor and Westcon brands, has order-processing staff in 42 countries in EMEA, Grant said, adding that any staff whose roles are displaced will be offered the choice of staying on to help with the migration. Employee and other fees associated with the migration will cost parent Datatec about €11.5m in its current financial year.
Rival distributor Ingram Micro centralised more EMEA back-office functions to Sofia in Bulgaria last year.
Grant said it made more sense for Cisco, Avaya, Polycom, Juniper and Check Point partner Westcon to partner with a BPO outfit with knowledge of the region. "We have chosen an organisation where it is their core business to provide business processes and support," he said. "We are not experts in sourcing a facility or finding local language specialists and training them on what we do."
Romania, which is where the BPO firm in question will carry out Westcon's transactional work, was ranked fourth in an index of the top global BPO locations this year carried out by Cushman & Wakefield, behind Vietnam, the Philippines and Bulgaria. Grant emphasised that Westcon's "core value-add" will be retained in-house and claimed that neither customer service levels nor its ability to execute would be affected by the move. "Our top 10 vendor partners have all offered to make sure there is good knowledge transfer and are helping to train our BPO staff," he said. "If you think about it, most of our major vendors have some part of their organisation that is outsourced so are completely familiar with what support they can give us."
Graeme Watt, EMEA president at rival distributor Avnet Technology Solutions, confirmed his company has also made some steps towards centralising transactional functions, "but nothing like on the scale we are seeing with Westcon". "It is fair to say that everybody is looking to see how much of that non-technical, more run-rate, transactional operations they can centralise," he said. "We have been talking about it for a while and we will centralise functions and operations where we think it makes sense and keep things local where we think it makes sense." (source: Channelweb United Kingdom).
Westcon only Symantec distributor in SADC
Symantec has extended its partnership with network and security specialist Westcon Group in the SADC region. Resellers in Botswana, Lesotho, Malawi, Mozambique, Namibia, Swaziland, Zambia and Zimbabwe are from now on able to source their Symantec products from Westcon, currently the only distributor in these regions.
Westcon Group acquires Verecloud
Network, security and telecom VAD Westcon Group has acquired the assets of Verecloud, the developer of a channel distribution platform for cloud and services solutions. Verecloud will be incorporated in Westcon Group's Cloud Solutions Practice, which will be led by former Verecloud CEO John McCawley. Founded in 2006, privately-held Verecloud has developed a robust, Telecom carrier-grade, cloud services aggregation and brokerage platform with the ability to process millions of concurrent transactions in real time, including subscription and usage-based services delivered by multiple third-party services providers. The platform will form the foundation of Westcon Group's cloud digital distribution solution, designed to help value-added resellers (VARs) generate significant revenue from cloud-enabled services. "Weston Group and Verecloud have been working together during the past 18 months and co-developed a truly differentiated cloud go-to-market capability for the channel. Our services distribution solution sets us apart from the industry, hence we decided to 'in-source' that intellectual property through this acquisition. Coupling our channel cloud enablement services with Verecloud's acquisition will position Westcon Group Cloud Solutions to drive the business models of tomorrow," said Dolph Westerbos, Chief Executive Officer, Westcon Group. Technology OEMs and cloud service providers (CSPs) look for a partner that can "light up" the channel. Westcon Group delivers this through its robust cloud distribution solution – freeing resellers to focus on development of their IP, including value-added professional services and technical expertise to build a cloud practice unburdened by practical challenges, such as micro-transaction billing, service level monitoring, up- and cross-selling, etc. Westcon Group links third-party cloud offers to resellers and their end customers, and now offers an additional go-to-market channel for the resellers' own services offerings. Bringing these aggregated solutions to market on a scalable, multi-tiered, and full-lifecycle management platform will generate new revenues for technology OEMs, cloud service providers, and value-added resellers. Continued Westerbos: "Channel innovation is core to our business, and ownership of our digital distribution platform allows us to bring differentiated, exclusive solutions to the channel without relying on third-party software development. Furthermore, having cloud services distribution fully integrated with our hardware and software distribution systems and operational processes allows us to seamlessly transact cloud and hybrid solutions as business-as-usual." Westcon Group's cloud and services distribution platform delivers the following core capabilities:
Westcon Group also provides channel enablement services to help resellers manage their business transformation. Westcon Group is building a set of critical Operational Support Services (OSS) and Business Support Services (BSS) to help VARs become successful cloud partners. Over the next year, these white-labelled/reseller-branded offerings will include:
VAD Westcon Group has announced its intent to acquire Intact Integrated Services, a provider of project, support, and managed services to the ICT and Cisco channel industry, formerly a direct subsidiary of Westcon's parent company Datatec. The deal ought to strengthen Westcon's commitment to partner-led services offerings, empowering reseller customers with broader services capabilities. Headquartered in the UK with offices in Germany, Asia Pacific and the Americas, Intact works with telcos, OEMs, system integrators and VARs – helping to generate new revenue, deliver complex technology projects, and support global initiatives. A specialist in the Cisco channel, the company provides white-label services and support centered on networking, data center/cloud and collaboration technologies. Intact becomes a critical piece of Weston Group's Global Services Solution Practice, led by Executive Vice President Pedro Galatas. Helping partners expand their business, the company's focused areas include: Security, Unified Communications and Collaboration, Data Center, Cloud, and Global Deployment.
Our directory is updated daily through information sent by vendors and distributors. Here are the latest updates :
Luckystar Computers (I) Pvt Ltd
India - Specialist
Netsafe Solutions Hravtska d.o.o.
Croatia - VAD
Netsafe Solutions Bulgaria e.o.o.d.
Bulgaria - VAD
Netsafe Solutions Srl
Romania - VAD
Arrow ECS Slovakia s r.o.
Slovakia - VAD
Share Distribuzione Srl
Italy - VAD
Ignition Technology Sub-Saharan Africa
South Africa - VAD
Ignition Technology ME
United Arab Emirates - VAD
Ignition Technology France
France - VAD
Kosmotech (KSM YuA TOV)
Ukraine - Specialist
Westcon Africa (Namibia) (Pty) Ltd
47C (corner of) Church and Schmerenbeck streets
Phone : +264-61255123
Fax : +264-61228035
Website : http://za.westcon.com
General manager :
Mr Tiens Lange
Creation year : 2008
VAD : Networks and telecoms, security, software
Main brands : Broadcom Software (div. Symantec Enterprise), Cisco, HPE Networking, McAfee, Microsoft
Clients : Assemblers, broadline e-commerce, broadliner, buying groups, consumer electronics, dealers, department stores, hypermarkets, independent retailers, IT consulting, system integrators and VARs, marketplaces, service providers, specialist, specialized and corporate resellers, trader
Our directory is updated daily through information sent by vendors and distributors. Here are the latest updates :
Luckystar Computers (I) Pvt Ltd - India - Specialist
Netsafe Solutions Hravtska d.o.o. - Croatia - VAD
Netsafe Solutions Bulgaria e.o.o.d. - Bulgaria - VAD
Netsafe Solutions Srl - Romania - VAD
Arrow ECS Slovakia s r.o. - Slovakia - VAD
Share Distribuzione Srl - Italy - VAD
Ignition Technology Sub-Saharan Africa - South Africa - VAD
Ignition Technology ME - United Arab Emirates - VAD
Ignition Technology France - France - VAD
Kosmotech (KSM YuA TOV) - Ukraine - Specialist
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