Westcon acquires cloud services business Verecloud
Datatec Limited ("Datatec" or the "Group", JSE and LSE: DTC), the international Information and Communications Technology (ICT) group, announces that Westcon Group ("Westcon") has acquired the assets of US based Verecloud, Inc. ("Verecloud"), the developer of an advanced channel distribution platform for cloud and services solutions, for $12 million.
Established in 2006, Verecloud's cloud services platform aggregates best-in-class cloud solutions and services and acts as a brokerage providing businesses with complete access and control of all their cloud applications from one portal. The platform will be incorporated into Westcon's Cloud Solutions Practice and form the foundation for its cloud go-to-market solution which is designed to help resellers drive significant revenue from cloud-enabled services.
The acquisition consideration will be settled through the issue of Datatec shares in three tranches, with the first tranche consisting of the allotment of 1,998,831 ordinary ZAR 0.01 shares. The second and third tranches are dependent on a number of conditions and will become payable one and two years after the transaction date, respectively. Applications have been made to the JSE and LSE for the listing of the 1,998,831 first tranche shares, which is expected to become effective on 12 September 2014. After this issue, Datatec will have an issued share capital of 199,548,183 shares of which 105,908 are Treasury shares.
Jens Montanana, Datatec's Chief Executive Officer commented:
"Verecloud enables Westcon to bring powerful channel-optimized cloud solutions and services distribution capabilities to the market. Over the past 18 months, they have co-developed a truly differentiated cloud go-to-market capability. They are well positioned to leverage the potential that cloud has for technology vendors, and for resellers to broaden their service solutions."