JOHANNESBURG, June 6 (Reuters) - South African information technology firm Datatec Ltd will sell its Westcon-Comstor Americas business to Synnex Corp for up to $800 million, the company said on Tuesday.
Westcon-Comstor, a distributor of technology and services for network security and data centres mostly in the United States, accounts for more than a third of Datatec’s sales and a quarter of profit.
“The transaction provides a unique opportunity for Datatec to partner with a leading distribution business in North America and benefit from its significant scale,” Datatec said in a statement.
U.S.-based Synnex will buy Westcon-Comstar’s North American and Latin American businesses for $500 million in Synnex shares, $130 million in cash and a further $200 million cash payment subject to Westcon’s full-year performance.
In addition, Synnex will take a 10 percent stake in the remaining part of Westcon International for $30 million. (Reporting by TJ Strydom; Editing by Sherry Jacob-Phillips)