Latin America. Synnex Corporation announced the completion of the acquisition of Westcon-Comstor Americas and minority investment in Westcon EMEA and APAC [Europe, Middle East and Africa (EMEA) and Asia Pacific (APAC)] companies.
"I am 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 its recognized leadership in security, UCC and networking will enhance our value proposition in the marketplace. The acquisition of Westcon-Comstor Americas continues to build on our strategy of positioning the business where technology is growing."
The acquisition strengthens the company's market position in North America and adds a stable presence in Latin America. It also creates a strategic partnership with the Westcon-Comstor EMEA and APAC businesses, enabling a seamless global experience for partners.
The financial details of the acquisition are:
- $600 million in cash for Westcon-Comstor Americas companies.
- $30 million in cash for a 10% minority investment in Westcon-Comstor EMEA and the APAC businesses.
- Approximately $190 million of net debt assumed.
- In addition, Datatec has the ability to receive up to an additional $200 million if financial goals are met through February 2018.
- SYNNEX has commissioned a $1.8 billion facility, including a $1.2 billion term loan and a $600 million revolver to finance this acquisition and provide additional working capital requirements.
According to Synnex, in the first 12 months after closing, this acquisition is expected to generate approximately $0.70 diluted non-GAAP EPS.
The acquisition solidifies Synnex as a leader in security, UCC and networking, providing strong strength, capabilities and comprehensive offerings in these attractive markets.
