Tech Data buys Brightstar Europe outright

$166m joint venture buyout echoes rival Ingram's recent acquisition of BrightPoint

Days after Ingram Micro's acquisition of BrightPoint, Tech Data has agreed to buy the 50 per cent stake it does not already own in pan-European mobility distributor Brightstar Europe.

Formed in 2007 as a joint venture between Brightstar and Tech Data, Brightstar Europe provides distribution and supply chain solutions to the mobility industry. It hit revenue of about $1.8bn (£1.16bn) in its last fiscal year.

Tech Data has agreed to pay Brightstar about $165.6m in cash for its equity in the venture, with the transaction set to close in Tech Data's fiscal third quarter.

Tech Data chief executive Robert Dutkowsky said full ownership of the firm would be in the best interests of shareholders, adding that his firm remains committed to its TDMobility joint venture with Brightstar in the US.

"Our European mobility business is a key element in our strategy of diversifying into higher-growth, higher-return speciality areas," he said.

The move comes just over a week after Tech Data's arch rival, Ingram Micro, agreed to stump up $840m for global mobility distributor BrightPoint.