Mergers, Acquisitions and Financial Results

South African IT company Datatec Ltd. has bought Avnet Inc's U.S.-based Hewlett-Packard business unit, it said last Monday.

Datatec did not give financial details but said in a statement the deal would boost revenues at the U.S. unit of its core Logicalis networking business to over US$450 million from around US$350 million.

The acquisition had been approved by the South African Reserve Bank and would be effective on Jan. 9, it said.

Avnet's HP Business unit resells Hewlett-Packard Co. storage and server services in the southwest and central United States to a base of around 700 end users.

Datatec said the deal would give Logicalis -- which provides IT networking and services -- a foothold in new geographic markets, such as southern California.

"This announcement is part of Logicalis group's continuing strategy to grow both organically and by acquisition especially in the U.S. and UK markets," said Datatec Chief Executive Jens Montanana in a statement.

Logicalis has acquired two IBM partners in the United States in the past year and has bought two IBM distributors and one HP partner in Britain.