Tech Data has revealed today that it has entered into a definitive agreement to acquire the Technology Solutions business from Avnet in an estimated $2.6bn deal.
The cash and stock deal will create a distribution titan covering 35 countries and boost Tech Data's value added capabilities as well as giving it a presence in Asia-Pacific, an area it has not covered to date.
Bob Dutkowsky,chief executive of Tech Data, said in a personal statement: "I am excited to announce that Tech Data has agreed to acquire Avnet's Technology Solutions business, which specialises in datacentre solutions. This transaction will create a premier global IT distributor with the most diverse end-to-end solutions from the datacentre to the living room."
He continued: "This combination complements our value-added distribution capabilities in the Americas and Europe, while establishing Tech Data's presence in Asia-Pacific, which will be a new market for us. As a result of the enhanced value proposition created through this transaction, Tech Data will be even better positioned to capture opportunities in next-generation technologies, deliver differentiated value to our customers and vendor partners, support career development for our employees, and generate strong returns for our shareholders.
"We believe the strategic and financial benefits resulting from this transformative combination are compelling for both our company and our stakeholders. We look forward to welcoming the Technology Solutions team to the Tech Data family and are excited about the future opportunities ahead."
Patrick Zammit, president of the Technology Solutions business, said in a statement: "Industry standardisation, innovation and converging technologies have transformed our industry. The broader portfolio created through this combination will enable both businesses to better capitalise on these trends, while also providing new opportunities for Technology Solutions to optimise and expand its offering, as well as unlock value in ways we could not historically. Given the strength of our customer and vendor relationships, our common cultures and values, as well as the skilled and engaged teams at both businesses, I am confident that this is a winning combination."
Stay tuned to channelweb for all the reaction to this merger.
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