South African ICT group Datatec has announced the completion of its acquisition of network distributor Comztek Holdings after fulfilling all conditions for the completion of the deal. after gaining ZAR48 million (US$4.8 million) funding.
HumanIPO reported in November the announcement of the acquisition terms, with the deal now finally having been fully completed.
Listed on the Johannesburg Stock Exchange (JSE), Datatec purchased Comztek for ZAR88 million (US$8.8 million), including management team members and employee trusts.
Its status of fulfilling the requirements as premised condition for the sale was announced this morning (Monday).
The acquisition was funded by ZAR48 million (US$4.8 million) loaned cash with 752,606 Datatec shares issued at ZAR0.1 to make up for the remainder of the cost.
Comztek will be integrated into Datatec’s Westcon South Africa subsidiary, to be followed by an internal reorganisation.
Mineworkers Investment Corporation, the group’s black economic empowerment (BEE) partner will own 40 per cent stake in the combined business.
While Comztek management will hold 9.9 per cent, Datatec, as part of Westcon Emerging Markets Group, will have 50.1 per cent.
