Westcon-Comstor secures strategic funding from General Atlantic to accelerate global expansion

The distributor’s latest deal with the long-term growth investor bolsters its capital and strategic support, paving the way for further international growth without altering its successful operating model.

Westcon-Comstor has struck a strategic investment and financing deal with General Atlantic, bringing in the global growth investor as a minority shareholder and long-term funding partner. The arrangement leaves Datatec in control of the business and keeps the existing leadership in place, while giving the distributor more room to pursue expansion.

The timing reflects a company that has been on a sustained upward run. Westcon-Comstor said it has now posted seven straight years of growth and recently reported record annual gross sales of US$5.74 billion. Its performance has been supported by demand across Europe, the Middle East and Africa, as well as Asia-Pacific, where the group continues to widen its reach.

According to Westcon-Comstor, the deal is designed to add capital strength and strategic support without changing the operating model that has underpinned its recent progress. David Grant, the company’s chief executive, said the move gave the group “greater flexibility to accelerate our growth strategy”, while Datatec chief executive Jens Montanana said the structure preserves and extends what he called the company’s “winning” formula.

General Atlantic, which describes itself as a long-term growth investor, said it expects to help Westcon-Comstor expand its portfolio and international presence further. The distributor, which operates in more than 50 countries and employs more than 3,600 people, has been shifting towards software and services-based revenue and has continued to lean on cybersecurity, networking, data centre and cloud infrastructure as key growth areas.

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Source: Noah Wire Services