Information technology group Datatec has experienced one of the strongest years in its history as AI adoption fuels demand for its infrastructure and deep technical expertise and services.The group on Tuesday reported a 9.3% rise in gross invoiced income to $8.46bn for the year to end-February, while gross profit rose 9.6% to $997.8m. Profit after tax rose to $108.7m from $69.3m before.Earnings before interest, tax, depreciation and amortisation (ebitda) was 21.6% higher at $269.1m. HEPS were 56.6% higher at 39.9c.The increase was led by a “very strong” Westcon International financial performance driven by network upgrades and significant cyber expansion and an “exceptional” contribution from Logicalis International.Logicalis Latin America reported an improved financial performance, it said.The solid profit growth has driven an increase in the final dividend to 14c, taking the total dividend to 24c from 15.5c a year ago.The company said AI infrastructure investment is driving demand for its products and services and trading was resilient, despite the geopolitical impact of conflicts and trade wars. It said vendors are increasingly relying on channels and experienced partners to address complex digital solutions.CEO Jens Montanana said Datatec was celebrating one of the strongest years in its history, underpinned by excellent execution, financial performance and operating leverage. “AI adoption is increasing IT complexity, fuelling demand for infrastructure and deep technical expertise and services. As a digital channels organisation, the group is well-positioned to take advantage of these dynamics and expects continued strong performance in FY27,” he said.Montanana said AI adoption is creating more complex IT environments and is increasing the reliance of businesses on specialised service providers with deep domain expertise to ensure resilience, scalability and performance.The group recently embarked on an acquisition spree, adding NetworkedAssets, a specialist in software development, network automation and observability solutions, to its stable.The acquisition, through Datatec’s subsidiary Logicalis Germany, became effective on March 24 and established a footprint in Poland.That acquisition was the third this year for Datatec. Earlier this year Datatec’s subsidiary Logicalis USA acquired 100% of Maple Woods Enterprises, a long-term security partner of Logicalis USA. A few days before that, Datatec expanded in the Balkans with the acquisition of Real Security, a value-added cybersecurity distributor headquartered in Maribor, Slovenia.The group said the acquisition, done through its Westcon-Comstor subsidiary, establishes a strategic foothold for Westcon-Comstor in the Balkans region.“Despite geopolitical tensions and energy constraints causing supply chain volatility, trading to date has remained resilient. We expect continued improved financial performance in FY27,” Montanana said.“The group’s ongoing strategic review continues to address the persistent gap between Datatec’s valuation and the inherent value of its subsidiaries, while also ensuring the group is positioned to take full advantage of the positive market dynamics for its technology solutions and services,” he said.
AI adoption fuels demand for Datatec’s services
Datatec CEO expects financial performance to continue to improve in FY27











