Tech Data adds to the knowledge
Broadliner sells off EMEA training arm following flat financial results in the region
Tech Data is selling off its Azlan Training arm in EMEA to Global Knowledge for an undisclosed sum, following disappointing financial results in Europe.
Due to be announced today, the move will create the biggest Cisco and Microsoft training partner in Europe in Global Knowledge, according to sources close to the firm.
Speaking with CRN after the release of the company's financial results last week, Steve Raymund, chief executive at Tech Data, parent company of Computer 2000 (C2000), said: “Our numbers were down primarily because of Europe as we are underway with our restructuring and our focus is to stabilise the business. There will be a couple more quarters of hard slogging in Europe until we see this pay off.
“The training business is part of the networking business that we acquired with Azlan, and it did perform for us, but it is not part of our core necessity for distribution. Rather than hope for the best we decided to divest ourselves from it, and concentre 100 per cent on our distribution business,” he said.
Mark Hatton, managing director at distributor Sphinx, said: “I think the move will reduce its value to its customers, as it will no longer be able to provide training. There may be a clause that says Global Knwledge will become its training partner of choice, but this may also mean that C2000 cannot do any training itself.”
Tech Data’s results, as revealed by CRN online last week, showed Q4 turnover of $5.5bn, a decrease of 1.3 per cent from fiscal Q4 2005 and down nine per cent sequentially. Based on a Generally Accepted Accounting Principals, profit was $28.5m, compared with $58.1m for the prior year period.
Raymund said Europe was “not generating anywhere near appropriate profit” at the moment.