Tech Data Corporation today announced it has completed its acquisition of the Technology Solutions business from Avnet, Inc.
The combination creates a premier global end-to-end IT distributor with unmatched capabilities and the most diverse solutions from the data center to the living room.
"This is a momentous day in our company's history and we are excited to welcome our talented colleagues at Technology Solutions to the Tech Data family," said Bob Dutkowsky, chief executive officer of Tech Data. "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. Our organizations' common cultures, shared values and commitment to providing a world-class customer experience will serve as the foundation for the new Tech Data. Together, we will be an even stronger company, capable of doing more for our channel partners than ever before. We remain confident that the acquisition of Technology Solutions creates a winning combination for our customers, vendors, and shareholders, as well as the employees of both organizations".
The addition of Technology Solutions significantly broadens Tech Data's value-added distribution business, increasing the company's ability to help its partners capitalize on next-generation technologies while enhancing its go-to-market capabilities with complementary skills, expanded vendor relationships, and new customer sets. The combined company has a larger and more balanced geographic footprint, including a presence in the Asia-Pacific region, a new market for Tech Data.
The company has operations in 40 countries, with 14,000 employees serving approximately 115,000 customers in more than 100 countries.The company also announced its global executive leadership, as well as several new regional and global roles.
Reporting to CEO Bob Dutkowsky are:
- Chuck Dannewitz, executive vice president, chief financial officer
- Rich Hume, executive vice president, chief operating officer
- Beth Simonetti, executive vice president, chief human resources officer
- John Tonnison, executive vice president, chief information officer
- David Vetter, executive vice president, chief legal officer
- William Chu, president, Asia-Pacific
- Jaideep Malhotra, president, Global Computing Components
- Joe Quaglia, president, Americas
- Patrick Zammit, president, Europe
- Els Demeester, corporate vice president, Integration
- Michael Urban, corporate vice president, Strategy, Transformation and Global Vendor Management
The total purchase price at close was approximately $2.6 billion (subject to certain post-close adjustments), including $2.4 billion in cash, and 2,785,402 shares of Tech Data stock, representing approximately 7.3 percent of Tech Data's shares outstanding (after issuance of the new shares). Tech Data financed the cash portion of the purchase price through a combination of $1.0 billion from its recent public debt offering and $1.0 billion of bank term loans, and the remainder from drawings under other credit facilities and cash on hand.The transaction is expected to be significantly accretive to Tech Data's non-GAAP earnings per share in the first full year. The company expects to achieve annual cost savings of approximately $100 million within 24 months, with one-time costs to achieve these cost savings expected to be approximately $150 million.