SYNNEX Corporation announced the completion of the acquisition of the Westcon-Comstor Americas businesses and minority investment in Westcon EMEA and APAC businesses. The acquisition solidifies SYNNEX as a leader in security, UCC and networking, providing deep strength, capabilities, and comprehensive offerings in these attractive markets.
“I’m excited to welcome the Westcon-Comstor Americas team to the SYNNEX family,” said Kevin Murai, President and CEO of SYNNEX Corp. “We believe this talented team and their recognized leadership in the security, UCC and networking space will enhance our value proposition in the market place. The acquisition of Westcon-Comstor Americas continues to build on our strategy of positioning the business to where technology is growing.”
The acquisition strengthens the company’s market position in North America and adds an established presence in Latin America. It also creates a strategic partnership with Westcon-Comstor EMEA and APAC businesses, enabling a seamless global experience for partners.
The financial details of the acquisition are:
- $600 million cash for Westcon-Comstor Americas businesses
- $30 million cash for 10% minority investment in Westcon-Comstor EMEA and APAC businesses
- Approximately $190 million of net debt assumed
- In addition, Datatec has ability to receive up to an additional $200 million earn out if certain financial targets are achieved through Feb 2018
- SYNNEX has put in place a $1.8 billion facility which includes a $1.2 billion term loan and a $600 million revolver to fund this acquisition and provide additional working capital requirements.
- In the first 12 months after close, this acquisition is expected to generate approximately $0.70 diluted Non-GAAP EPS. Further details will be provided in the upcoming third quarter earnings release and conference call.