Bekker's Blog

Blog archive

Tech Data-Avnet Close Blockbuster Distribution Acquisition

Tech Data Corp.'s acquisition of the Technology Business Solutions business of Avnet Inc. is complete, the distributor said on Monday.

The cost to Tech Data is $2.6 billion, which was the amount that Tech Data said it expected to pay when the companies originally announced the deal in September. Funding included $1 billion from Tech Data's recent public debt offering, $1 billion from bank term loans, $400 million from drawings under other credit facilities and cash on hand and nearly 2.8 million shares of Tech Data stock.

Tech Data expects the transaction to add to earnings per share in the first full year, with annual cost savings of about $100 million coming within 24 months and one-time costs of about $150 million to achieve those savings.

In a statement, Tech Data CEO Bob Dutkowsky called it "a momentous day" in Tech Data's history.

"Our combined company is perfectly positioned at the epicenter of the IT ecosystem -- with the scale and scope to serve dynamic markets throughout the world -- giving our customers access to an end-to-end portfolio of IT solutions and efficiently bringing our vendors' products to new customers in more markets," he said. "Together, we will be an even stronger company, capable of doing more for our channel partners than ever before."

In the pitch for the deal, Tech Data said Avnet's Technology Business would add substantial datacenter capability to its portfolio and broaden its international reach.

Posted by Scott Bekker on February 27, 2017 at 9:05 AM


Featured

  • Silver Pins

    Microsoft Teams Sprawl: What It Is and How Partners Can Fix It

    Microsoft Teams is having its boom period and the remote-work revolution is driving it. But for many organizations, that hasn't been without its downsides.

  • The 2021 Microsoft Product Roadmap

    From Windows 10X to the next generation of Microsoft's application server products, here are the product milestones coming down the pipeline in 2021.

  • Privacy Management for Microsoft 365 Hits 'General Availability'

    Microsoft's Privacy Management for Microsoft 365 hit the "general availability" milestone on Tuesday, according to the company.

  • Notebook

    Sikich Acquires Gold Microsoft Dynamics Partner PA Group USA

    There's some consolidation happening in the Microsoft Dynamics space this week, with Sikich LLP announcing its plan to acquire Dynamics specialist PA Group USA.