Tech Data closes $2.6 billion acquisition of Avnet Technology Solutions
Tech Data, the global tech distribution giant, closes its $2.6 billion acquisition of the Technology Solutions (TS) unit of network distributor AVnet. Florida-based TS has revenues of $9.65 billion in data center solutions, and will increase the data center share of the business of Tech Data to 45%. The take-over is paid by $2.4 in cash and $245 million in shares Tech Data. Following the departure of TS, Avnet stays behind as a pure-play semiconductor distributor, owning 7% of shares Tech Data which values the latter at $3.5 billion. Post-acquisition, Tech Data will have 14,000 employees in 40 countries. It’s main rival, Ingram Micro, is around double the size of Tech Data in terms of employees and revenues, but has a slightly different strategy, focusing more on cloud services and sourcing products for its own OEM (Original Equipment Manufacturing) brands.