Datatec takes 100% Westcon stake

Datatec has snapped upVC outfit Routine Capital's stake in Westcon, taking its share in the networking and convergence distributor to 100%. Prior to the transaction Westcon's equity was owned 97.4% by Datatec and 2.6% by Routine Capital Corporation. The deal will take the form of a Stock Purchase Ag

Datatec has snapped up VC outfit Routine Capital's stake in Westcon, taking its share in the networking and convergence distributor to 100%.

Prior to the transaction Westcon's equity was owned 97.4% by Datatec and 2.6% by Routine Capital Corporation.

The deal will take the form of a Stock Purchase Agreement by which shares owned by Routine Capital - which is owned by an undisclosed Westcon director - will be repurchased and then cancelled by Westcon.

Datatec will fork out $14.25m (£8.95m) for the stake, made up of $2.37m in cash and an $11.87m loan note, which will become repayable over a five year period from 30 September 2011.

Datatec has also issued an interim earnings update for the six months to the end of August, in which it said it expected sales to be approximately $2.1bn, up 16.6% year-on-year, with gross margins remaining stable.

A full set of results will be published on 13 October.

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