martinwolf
Transaction Analysis
Datatec to Sell Major Stake in Westcon-Comstor
Financial Information*
- Enterprise Value $800 million*
Transaction Facts
A Changing Distributor Landscape
- Recovering Lost Ground: Founded in 1985 and generating $5 billion in revenue, Westcon-Comstor is Datatec's largest subsidiary. But the distributor has experienced difficulties in the final stages of its SAP implementation in the Europe Middle East and Africa (EMEA) region. Though Datatec has made adjustments to its operating model and expects a fast recovery, the company is still recovering lost ground.
- Optimism in Solutions: By contrast, Datatec's solution provider Logicalis, which has an annual revenue of over $1.5 billion, has been performing up to expectations. In early March, Logicalis started new operations in South Africa.
- Consolidation Continues: This potential transaction would further the rapid changes underway in the channel. With Tech Data's $2.6 billion acquisition of Avnet Technology Solutions, HNA Group's $6 billion acquisition of Ingram Micro, and Arrow Electronics' acquisition of Distribution Channel just last year, the distributor space is transforming through major M&A.
For more information about this announcement,
click here to read the announcement.
*Enterprise value derived from the announcement.
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About martinwolf
With offices in New York and the San Francisco Bay Area, martinwolf is a leading M&A Advisory focused on middle market companies in the IT Services, IT Supply Chain, IT-Enabled Business Process Outsourcing and Software as a Service (SaaS) space. Since 1997, our team has completed more than 150 transactions in over 20 countries and sold seven divisions of Fortune 500 companies. martinwolf is a member of FINRA and SIPC. For more information, visit www.martinwolf.com. To learn more about martinwolf, contact Matthew Putzulu at mputzulu@martinwolf.com. © martinwolf 2017 |
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