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November 28, 2005

Logicalis nabs HP enterprise unit, switches distributors

Logicalis Group, the IT services arm of South African Network company Datatec Ltd, has continued its recent streak of acquisitions with plans to purchase the HP enterprise end-user business unit of electronics distributor Avnet Inc for an undisclosed amount.

By CBR Staff Writer

The HP unit brought in $100m for Avnet during the last fiscal year, and it will give Logicalis annual HP revenue of some $220m. Approximately 30 Avnet employees will transfer to Logicalis as part of the acquisition.

The company has in the past 12 months made several acquisitions of services companies, including US IBM integrators Solutions Technology Inc and Eisco Technology Inc, as well as UK IBM services firms Notability Solutions and TBC Ltd. It also bought UK-based, Hawke Systems Ltd, an HP storage partner.

Logicalis has also chosen Avnet as its new exclusive HP and IBM enterprise distributor, replacing fellow IT distributor Arrow. Logicalis and Avnet expect the new deal to be worth around $1bn over its five-year term. The contract builds on the existing supplier deal the two already have for Oracle and StorageTek products, according to spokespersons from the companies.

Logicalis’ contract with Arrow ran for three years and ended in August.

Both the distribution deal and the acquisition are expected to become effective in early January, said Lisa Dreher, vice president of marketing and business development at Logicalis.

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