Acquisition to bring Westcon new markets for software services

Tarrytown-based communications services, data security and data center provider Westcon Group acquired the Afina Group as part of a July 2 deal valued up to 50 million euros, or about $62.5 million.

Afina, which is based in Madrid and has its U.S. headquarters in Miami, is a distributor of data security software in addition to providing data center services, and has strong roots in Latin America, the Caribbean and parts of Europe and North Africa.

With 400 employees based in 12 countries, Afina expects revenue for its current fiscal year to approach $300 million.

Westcon spokesman Craig Librett called the deal “a very big win for us,” saying it allows the company to extend its reach into new markets and to form stronger relationships with the various software vendors it partners with.

Librett said Westcon specializes in giving software developers access to markets in which they were previously unable to secure a foothold.

Latin America, Europe and North Africa represent “a very high-growth IT spending market with a lot of vendors targeting that area and a lot of resellers looking to adopt technology,” he said.

Afina”™s vendor portfolio includes VMware and Citrix, which both provide cloud computing and virtual server technology, Riverbed, which provides software improving networks and network performance and Symantec, which provides security software, such as the Norton suite.

Afina was acquired through a deal that involved Westcon parent company Datatec Ltd., based in South Africa, buying GLS Software S.A. from Araguaya S.A. Westcon is a private holding of Datatec, while Afina was a holding of GLS Software.

Datatec will pay Araguaya 30 million euros in cash, 10 million euros in Datatec stock, which is traded on the London Stock Exchange and the Johannesburg Stock Exchange, and another 10 million euros in cash contingent on Afina meeting certain performance goals.