Done deal: Tech Data Completes Its Acquisition Of Avnet
Bengaluru: Tech Data Corporation has completed its acquisition of the Technology Solutions business from Avnet Technology solutions for $2.6 billion. Avnet’s completion of Tech Data’s mega acquisition will unlock a broader line card while maintaining access to key pre-sales and marketing contacts, hope partners, who are now looking at greater clarity on the matter.
“We have doubled down on our electronic components and integrated and embedded solutions business,” Avnet CEO Bill Amelio said in a statement. “We wish our former Technology Solutions’ employees well as they start a new and successful chapter of their business history with Tech Data.”
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.
“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,” said Bob Dutkowsky, chief executive officer of Tech Data.
The company assured that by combining with Avnet “creates a global end-to-end IT distributor with diverse solutions from the data center to the living room.”
“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,” Dutkowsky mentioned.
Tech Data said that the addition of technology solutions significantly broadens the company’s value-added distribution business, increasing its 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 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 and David Vetter, executive vice president, chief legal officer.
Post-acquisition Tech Data will have 14,000 employees in 40 countries serving some 115,000 customers in more than 100 countries, while Avnet is now a pure-play semiconductor distributor.