Synnex, Datatec In Major Westcon-Comstor M&A Deal -

In a multi-pronged deal, Synnex is acquiring Westcon Comstor's North America and Latin America business from Datatec Ltd. Synnex is also acquired a minority equity share in Weston-Comstor's EMEA and APAC operations, the companies said. On the flip side, Datatec will acquire a minority equity share in Synnex, the parties confirmed.

According to financial terms of the deal:

Synnex will pay $500 million in stock and $100 million in cash at closing
Up to $200 million earn out if certain financial targets are achieved through Feb 2018
$30 million for 10% ownership of Datatec's Westcon EMEA and APAC businesses
Approximately $115 million of net debt will be assumed and refinanced with the close of the transaction
Option to pay all cash, based on the average share price at closing
If stock is issued, the SNX Board of Directors will appoint Jens Montanana to the SYNNEX Board of Directors, subject to compliance with legal and regulatory requirements

According to a joint announcement:

"The companies will operate under a single go-to-market structure, ensuring that vendor partners and solution providers receive the same levels of service with no disruptions. The agreement also allows Westcon-Comstor International to better align its regional resources and seek new opportunities for growth.
Both SYNNEX and Datatec will have shareholder interest in the Westcon-Comstor Americas and the Westcon-Comstor International businesses as well as representation on each other’s board of directors, ensuring strategic and operational alignment."

The deal is expected to close in the third calendar quarter of 2017, subject to the satisfaction of regulatory requirements and customary closing conditions, the companies said. Until the transaction is completed, the companies will continue to operate independently, they added.

Synnex will share more details during a call at 9:00 a.m. ET on Tuesday, the company said.