Datatec Acquires Weston Africa

VENTURES AFRICA- Information and Telecommunication Technology Group, Datatec, has acquires the 33.1% ownership of its African business, Weston Africa; through its subsidiary company, Weston Group.
The reason for the acquisition is to have full ownership of the Weston Group.

However, the contract does not include Weston South Africa, which remains under the ownership of Datatec (74%) and its BEE partner, the Mineworkers Investment Corporation (26%).

The deal has been effected by agreement with the two minority partners in Westcon Africa – namely International Technology Distributors F.Z. (15.9 % share of Westcon Africa) – with $2.45 million to be settled by the issue of Datatec shares and a deferred cash payment based on 15.9% of half of the increase in value of Westcon Africa from 31 August 2011 to 28 February 2013.

The group has also settled with Mr & Mrs Paul Moser (17.2% share of Westcon Africa) through $2.65 million to be settled by the issue of Datatec shares and a deferred cash payment based on 17.2% of half of the increase in value of Westcon Africa from 31 August 2011 to 28 February 2013.

“The total additional consideration referred to above which is payable based on half the increase in valuation of the vendors’ share of the Westcon Africa businesses from 31 August 2011 to 28 February 2013 is estimated to be $1.5 million based on an extrapolation of the growth of the business to date,” Datatec stated.