Tech Data (TECD) to acquire Avnet Inc.'s (AVT) Technology Solutions

Tech Data Corp. on Monday announced that it would acquire Avnet Inc.'s Technology Solutions business unit in what its CEO called a "transformative transaction."

 

• AVT

Tech Data, a global IT distributor based in Clearwater, FL, said the transaction was valued at $2.6 billion — $2.4 billion in cash and 2.785 million shares of Tech Data common stock, based on a 15-day weighted average closing stock price. The stock represents a 7 percent ownership share of Tech Data.

When the transaction is complete — it's expected to close within the first calendar half of 2017 — Tech Data will be a $35 billion company with more than 14,000 employees, spokesman Brian Kosoy said Monday.

With the acquisition, Tech Data's data center business will have an immediate presence in the Asia-Pacific region. Once the deal closes — expected within the first calendar half of 2017 — Tech Data's data center footprint will expand from 21 to 35 countries worldwide. Of that, Europe comprises 53 percent of the company’s $35 billion anticipated revenues from the transaction, the Americas, 44 percent; and Asia-Pacific, 3 percent.

Technology Solutions currently does business with 40 IT vendors around the world, addressing the IT business needs of 20,000 customers in more than 80 countries. Tech Data has similar relationships with more than 600 vendors and 105,000 customers. As a combined company, the two will be able to offer more solutions to a more diversified customer base.