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Communications group hopes to improve African offering following merger

2nd August 2013

By: Schalk Burger

Creamer Media Senior Deputy Editor

  

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Global converged communications group Westcon has merged with African retail and services communications company Comztek to provide enterprise-grade services for all customers, specifically large companies operating in Africa, by using Comztek’s African footprint, says Westcon South Africa CEO and former Comztek MD Paul Conradie.

“Westcon gains a further African footprint and proven services and support for its customers, while Comztek gains access to new clients in the Westcon stable and additional capital to pursue growth in Africa.”

Comztek achieved organic growth prior to the merger, but Conradie foresees potential opportunity to accelerate the business’s growth on the continent through access to working capital from the Westcon merger.

“The merger also strengthens Comztek because its structures have been aligned with Westcon’s global business practices and we can provide skills and training in technical areas. This presents us with an opportunity to provide specialist expertise for the expanded customer base as a result of the merger.”

Conradie notes that the two companies competed prior to the merger, but did not share many clients, enabling both businesses to leverage the other’s client base.

“Benefits to our customers are expanded vendor and solutions offerings, focused business practices and a larger skills base drawn from the international footprint, supported by Comztek’s experience working in Africa.”

The Comztek brand will be retained and sold by the different business practices and the company will be named Westcon Comztek in South Africa, while it will continue to operate as Comztek Africa across the continent.

Further, Westcon gains an effective support and distribution channel through the Comztek Africa division as a result of the merger.

“Our service portfolio includes specialist spares and solutions offerings, which will improve the stock availability for Westcon and Comztek clients, as we can source stock globally, especially if we encounter availability constraints.”

Westcon Comztek has access to more than 20 logistics and staging facilities and the logistical capabilities of the company will become more important as its clients enter the African markets, he adds.

Large enterprise businesses will find it easier to enter the African market, as they often require guarantees from large vendors. This is now possible, owing to Westcon’s relationships with the vendors and the support from Comztek Africa’s network.

The new company structure will include six business practices – Comstor (Cisco business), Comztek Consumer Solutions, Westcon Communications Solutions, Westcon Mobility Solutions, Westcon Security Solutions, which includes an electronic and network division, and Comztek Software Solutions.

“Our employees also benefit because they can enjoy global exposure and have access to global opportunities. We have also implemented a mentorship programme, which is effective because of the new economies of scale in the company, owing to the large and specialised staff complement.

“We are also investigating the possibility of an internship programme and we are talking to vendors who may partner with us in such a programme,” says Conradie.

Comztek is a pan-African business with a turnover of R2-billion a year. It has more than 320 staff and 3 750 active customers. Westcon is a global business operating in 58 countries with a turnover of $4-billion a year and more than 20 000 active customers.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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