Mitac International and Synnex have together announced plans to spend US$800 million to fully acquire Westcon-Comstor's business in America and will also invest another US$30 million to purchase shareholdings in Westcon's businesses in Europe, the Middle East and Asia Pacific. Westcon is an affiliate of Datatec. Mitac currently holds a 13.66% stake in Synnex.
Synnex is a channel distribution and cloud computing system integrator and provides services to IT brand vendors including Asustek Computer, Lenovo, Hewlett-Packard (HP), Dell, Panasonic and Microsoft. Westcon-Comstor focuses on IT security, networking and unified communications and collaboration (UCC) platforms. The merger will be able to fill the gaps in Synnex's business lineup.
In Synnex's investment report, the company stated that the worldwide IT security market will have a scale of US$39 billion, network infrastructure US$42 billion, and UCC US$34 billion. The merger with Westcon-Comstor is expected to in bring strong contributions and fits the company's long-term business strategy.
Mitac detailed that US$500 million of the transaction will be paid in stock and US$300 million in cash. The company will also spend an additional US$30 million in cash to acquire 10% stakes in Westcon's branch offices in Europe, the Middle East, Africa and Asia Pacific. The transactions are scheduled to be completed by the third quarter.
Synnex previously announced plans to acquire Minacs for US$420 million in July 2016.
Article translated by Joseph Tsai
