September 21, 2016

Tech Data acquires Avnet’s business unit for $2.6 billion

The company has acquired Avnet’s Technology Solutions unit to establish its presence in Asia

This week, global technology distributor Avnet has announced that it has entered into an agreement to sell its Technology Solutions business unit to Tech Data Corporation. Under the terms of the agreement, Avnet will receive $2.4 billion in cash and 2.8 million shares of Tech Data common stock, currently valued at approximately $200 million.

Technology Solutions is one of Avnet’s two operating groups which is a distributor of data center and information technology hardware, software and supplies. They cater to various customers including resellers, software providers and original equipment manufacturers.

William Amelio, CEO of Avnet said :

We believe the acquisition of Technology Solutions by Tech Data is the best decision for our employees, customers, suppliers and shareholders.

This transaction presents us with the best strategic path for Avnet’s future success and profitability and puts Technology Solutions in position to achieve breakthrough business results with Tech Data

Tech Data’s Chief Executive, Bob Dutkowsky said in an interview that the deal would create a complete “end-to-end” distributor of data center equipment and technology.

He added :

If they can go to one place, it makes it easier for them and much more efficient for them to solve problems for their customers.

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