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SYNNEX to acquire large chunks of Westcon-Comstor

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:

  • €460M in stock and €90M in cash at closing
  • Up to €185M earn out if certain financial targets are achieved through Feb 2018 - which will allow Datatec to own about 10% of SYNNEX
  • €27.7M for 10% ownership of Datatec's Westcon EMEA and APAC businesses (with an option to double that ownership, although no details have been unveiled on how and when). Synnex also gets first refusal on making an offer to acquire it in its entirety if Datatec ever looks to sell the remainder of the business in the future, out of which Datatec wishes to get better value in the future, once the (difficult as usually) SAP implementation in the region is achieved.
  • Approximately €106 million of net debt will be assumed and refinanced with the close of the transaction
  • Option to pay all cash, based on the average share price at closing
  • If stock is issued, the SNX Board of Directors will appoint Jens Montanana to the SYNNEX Board of Directors, subject to compliance with legal and regulatory requirements

"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.

Veeam invests on Maghreb with GTI

Maghreb: virtualization editor Veeam has decided to invest directly in the Maghreb market, through a distribution partnership with the local office of Spanish broadliner GTI. "The Maghreb global market weights about 1/3 of the French market. So, logically we ought to generate a turnover in Maghreb of about 1/3 of our turnover in France. Since we work very well on the French market currently, it was time for us to invest in this market, which is an interesting new growth engine for us", explains Stéphane Gaillard, France country manager for Veeam. The editor was seeking a distributor which was already working with VMware, and already a Veeam partner. "Maghreb was not a focus for Avnet. Arrow ECS is not a VMware partner in Maghreb. Westcon could have been a choice, but they cover Maghreb from Dubai, while we manage the region from France. So, the obvious choice was GTI, with its new local sales office", says Stéphane Gaillard. The distributor, albeit young in Morocco, already has a fully certified team of 10 employees, and was very eager from the beginning to distribute Veeam in he region. "We will focus initially on the Moroccan market. Its growth, at 5 %, is interesting, and its global structure, quite diversified, looks like any European market. The Algerian market will be covered on a more opportunistic way, until GTI decides to open a local sales office", details Stéphane Gaillard who wishes to reach in the region about 20 to 25 % of its activity in France. The editor, with GTI, has organized an event with IDC, which led to interesting leads. "We must first transform them, then we will be able to go farther with more customers", concludes Stéphane Gaillard.

Ingram Micro, Esprinet, Biomag, BigTec, GTI, Westcon: business is thriving for Spanish distributors

Spain: broadliner Ingram Micro has expanded its offer with Manhattan and Intellinet cabling and networking products. The distributor has also added the Nfon cloud-based phone-over-IP offer to its UC BU, part of its Specialty Solutions division. Broadliner Esprinet has, on its side, inked a deal with gaming and PC component specialist Biomag, and will distribute its full gaming offer, including Mars Gaming, Templarius, Vulcano and Zeus-branded products from Tacens and Aerocool. BigTec, the datacenter division of network and security VAD Exclusive Networks, has been appointed official distributor by data protection vendor Rubrik. Broadliner GTI has added Griffin accessories to its mobile portfolio. This deal also covers Portugal and Northern Africa. Finally, infrastructure VAD Westcon has promoted Spanish citizen Carlos Mazón as Service Director for Southern Europe. Carlos will manage the service offer of the distributor in France, Italy, North Africa, Portugal and Spain (source: Channel Partner España).

GTI crosses the Mediterranean sea

Spanish broadliner GTI has opened a sales office in Casablanca, Morocco. Even if seemingly focusing on the value offer of GTI, GTI Afrique du Nord will be able to push the entire GTI portfolio in Maghreb (Algeria, Morocco and Tunisia) as well as French speaking Africa. It is currently managed by Maher El Ghailani, who is not a newcomer in the local distribution as he previously worked for Afina/Westcon as commercial director.

Westcon opens up about Romanian outsourcing move

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).

Recent additions

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 - MAT

Westcon Africa - MAT
16, rue des Asphodèles - 4ème étage
Angle Boulevard Ghandi - Quartier Maârif
MA-20380 Casablanca
Phone : +212-522234750
Fax : +212-522234760
Website : http://www.westcongroup.com


General manager : Mr Imad Tahzout
CFO : Mr Morad Benchettou
Sales director : Mr Fouad Amrani
Marketing director : Mrs Lia Iapaolo
Marketing director : Mrs Sylvie Vigato


Creation year : 2007
ICE : 001535524000010
VAT number : 40143313
Annual turnover
2019 : 13,44 M€
Indirect turnover : 100%
Export : Algeria, Benin, Burkina Faso, Burundi, Central African Republic, Chad, Comoros, Congo, Côte d'Ivoire, Democratic Republic of the Congo, Djibouti, Equatorial Guinea, Gabon, Guinea, Madagascar, Mali, Mauritania, Niger, Rwanda, Seychelles, Tunisia
VAD : Security, services and cloud computing, storage
Main brands : F5 Networks, Kaspersky, NetApp, Palo Alto Networks, VMware
Clients : Consumer electronics, dealers, ISV, software developers and editors, IT consulting, system integrators and VARs, service providers, specialized and corporate resellers, telecom operators
Employees : 15 people


Accessories and connectivity
Cabling and connectivity
CommScope (Ruckus Wireless)

Computers and peripherals
NetApp (Flexpod)

EDM (electronic document management)
EDM hardware
EDM software

Fixed phones, faxes and accessories
Snom technology
Mobile accessories
Snom technology

Networks and telecoms
Network infrastructure
CommScope (Ruckus Wireless), Extreme Networks, F5 Networks, McAfee, NetApp, snom technology, VMware
Voice- and video-over-IP hardware and software
Snom technology

IT security
CommScope (Ruckus Wireless), F5 Networks, Kaspersky, McAfee, NetApp, Palo Alto Networks, Vectra Networks

Services and cloud computing
F5 Networks, Kaspersky, McAfee, NetApp, VMware
CommScope (Ruckus Wireless), Extreme Networks, F5 Networks, Kaspersky, McAfee, NetApp, NetApp (Engenio), Palo Alto Networks, snom technology, VMware

Corporate software
NetApp, VMware

Storage infrastructure
NetApp, NetApp (Engenio), NetApp (Flexpod), NetApp (Solidfire)
Storage servers
NetApp, NetApp (Engenio), NetApp (Flexpod)
Storage software
NetApp, VMware


Value added services
After-sale consulting, after-sale service, authorized training centre, business plan help, co-marketing funds, configuration help, customer loyalty program, demos, help with specifications write-up, hot-line, manufacturer certifications, modeling, pre-sale consulting, regular special offers, sales help, technical deployment, training centre
Financial services
Automatic transfer, cheque, draft, letter of credit


Recent additions

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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