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