Westcon parent warns of significant transaction ahead

Datatec, the South African owners of Westcon Group and Logicalis, has announced it is in negotiations for a significant transaction, leading to suggestions Westcon-Comstor is about to join the growing list of distributors changing hands.

International reports have pegged Westcon-Comstor as the most likely of Datatec's businesses to be up for sale, however, the company also has integration and managed services business Logicalis and consulting and research company Analysys Mason in its stable.

The cautionary announcement says the ICT solutions and services group company 'has entered into negotiations in relation to a transaction by the company, which if successfully concluded, may have a material effect on the price of the company's shares'.

Shareholders are advised to 'exercise caution when dealing in their Datatec shares until a further announcement is made'.

No further details were given with the company noting that it won't be issuing its usual voluntary interim management statement at this time.

Datatec has more than 8500 employees across 70 countries.

Should suggestions of Westcon-Comstor being the target be accurate, it would join the growing list of major disties changing hands in recent times.

Last year Ingram Micro was acquired by HNA Group , with Avnet TS also being acquired, by Tech Data.