After some poor results, parent may want to concentrate on other divisions
The future ownership of Westcon-Comstor has been thrown into question following news that parent company, Datatec, has entered into a transaction which could result in the sale of the value-added distributor.
Based in South Africa, Datatec operates across three core divisions, controlling technology distribution through Westcon Group, integration and managed services through Logicalis and consulting and research through Analysys Mason.
After issuing a cautionary statement to advise shareholders of a potential acquisition deal, rumours are circulating that the $6.5bn company is preparing to sell its distribution division.
“Shareholders are advised that Datatec has entered into negotiations in relation to a transaction by the Company, which, if successfully concluded, may have a material effect on the price of the Company's shares,” a Datatec statement read.
HQ'd in the US, the distributor derives 90% of its revenue from a pool of 15 global vendor partners across 60 countries, with 42% of overall sales coming through Cisco.