datatecComztek acquired for R88m

Datatec had bought the whole of technology systems distributor Comztek from Mustek and other sellers for up to R88 million, Comztek said on Friday. Comztek distributes hardware and software for networking, security and storage in 26 African countries and has annual revenues exceeding R1 billion. Datatec said Comztek’s activities were “highly complementary” to those of its Westcon subsidiary. The deal is subject to competition and other commercial approvals and will be settled in R40m cash and shares in Datatec. A further R8m will be paid to management sellers subject to Comztek meeting certain earnings targets. Mustek said it would sell its 41.84 percent stake for R39.4m in cash and Datatec shares. Datatec rose 0.11 percent to close at R55.70 on Friday. Mustek fell 1.58 percent to R5.61. – Asha Speckman