Westcon announces post merger structure of business

Newly merged business brings a new market leader to the South African and African channel and distribution market.

June 25, 2013

Newly merged business brings a new market leader to the South African and African channel and distribution market

Westcon Group South Africa (Pty) and Comztek Holdings (Pty) Ltd are pleased to announce the new organisational structure of the business following the finalisation of the merger of the two businesses.

As per the merger Comztek will be integrated into Datatec’s Westcon South Africa subsidiary, operating under the under the banner of Westcon and co-branded Comztek. The existing Comztek business units will structurally become divisions of the Westcon Group, South Africa also referred to as Westcon.

“We are delighted that after receiving approval from no less than six Competition Commission boards across Africa the merger is officially finalised,” states Paul Conradie, CEO of Westcon Comztek. “As there has been little to no overlap between the two businesses, the structure of the new company will see several components of the Comztek business take on the face of separate business practices within the overall group.”

The new structure will be made up of six business practices which include: Comstor (Cisco business), Comztek Consumer Solutions, Westcon Communications Solutions, Westcon Mobility Solutions, Westcon Security Solutions that includes an electronic and network division and Comztek Software Solutions. The Comztek Africa business will enable the above mentioned business practices to deploy their relevant offering into the rest of the African market.

According to Conradie there will be a period of consolidation in the business as the backend and operational environments are merged, however there will be little to no disruption to customers over this period, as it remains business as usual from a partner viewpoint. From a staffing perspective Conradie adds that there is currently minimal overlap and the company is in an enviable position to currently be looking for additional staff for the businesses, as opposed to having to rationalise.

With regards to its black economic-empowerment partner, the Mineworkers Investment Corporation, the reorganisation and merger will see the corporation hold a 40% stake in the combined business; Comztek management owning 9.9% and Datatec, through subsidiary Westcon Emerging Markets Group, 50.1%.

“We have been in consultation with all of our vendor partners who are excited with the new prospects the merger holds for them. It is our intention to provide the reseller partners of our collective businesses the opportunity to expand their offerings to clients by tapping into the expanded product and services portfolio we now offer, which will in turn significantly grow their market share,” mentions Conradie.

The merger has created a new leader in the African channel landscape, augmenting and extending the current businesses of both organisations. Building on the excellent reputations of both, the company will continue to drive its unique formula of value-added distribution throughout the regions it has a presence as well as continue to emulate the support services model of the global Westcon Group for its resellers.