Tech Data Corporation has completed its massive acquisition of Avnet Technology Solutions.
The US$2.6b deal brings the world’s second largest distributor into the Asia Pacific (APAC) for the first time, effectively creating a premier global IT distributor.
Tech Data chief executive officer, Bob Dutkowsky says it is a truly momentous day for the company and they’re excited to welcome their colleagues at Avnet into the Tech Data fold.
“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,” says Dutkowsky.
Dutkowsky says the acquisition will help to create a ‘new’ Tech Data, with the foundation being laid by the organisations’ common culture, shared values and commitment to providing a world-class experience.
“Together, we will be an even stronger company, capable of doing more for our channel partners than ever before,” says Dutkowsky.
“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 organisations.”
According to Tech Data, the addition of Avnet significantly broadens their value-added distribution business, increasing their ability to help partner capitalise on next-generation technologies while enhancing its go-to-market capabilities with complementary skills, expanded vendor relationships and new customer sets.
There were also a number of global executive leadership roles announced, including president of the APAC region, William Chu, who will be reporting to new executive vice president and chief operating officer, Rich Hume.
The acquisition 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.
With operations in 40 countries and 14,000 employees, the company today serves approximately 115,00 customers in more than 100 different countries.