The distributor of computer servers and iPhones to software – Clearwater-based firm- has noted that is acquiring Avnet, a data center business with technology that is based in Phoenix.
The deal which is valued at $2.6 billion is not just the biggest recorded in the acquisition of a company, but also has set a landmark that businesses like Tampa Bay can learn from says Bob Dutkowsky, the CEO of Tech Data during an interview granted.
As at the moment, the annual revenue of Tech Data is rated to be $26 billion. When the acquisition pulls through, the company will become valued to be $35 billion with nothing less than 14, 000 employees. With that, it will come up to the level of Florida’s highest ranked company in 2015 valued at $32.4 billion – Lakeland-based which are Super Markets that are held publicly in Publix.
According to Dutkowsky, the company will become be more than American Express and will also be a Fortune 80 company.
This will make Tech Data the rank as second after the largest distributor of computer products – Ingram Micro. The deal, Dutkowsky said will transform the world of global IT distribution making data simplified between the living room and the data center. He added that the company will make the big step that the tech world has been yearning for.
The space of Tech Data is huge and is said to account for over 1, 000 manufacturers in the area of distribution of products ranging up to 75, 000. This is also inclusive of product lines in communications and networking, software, peripherals, mass storage and computer systems. They also make available support as well as training and service for their customers.
Some companies that are making use of Tech Data are HP, Microsoft, Apple, IBM, and Cisco.
Tech Data is looking at the market in Asia-pacific for Technology Solutions which boasts of 5, 000 employees the world over.
The customers from Technology Solutions will give Tech Data a bigger balance geographically. It will add 3 percent to the company’s business in Asia while its business in Europe will be rated at 53 percent and 44 percent in America.
This move is coming at a time that both Avnet and Tech Data could do with some boost. Tech Data had been under the impression that it will not spend much on IT in the two places it majorly operates in while Avnet, on the other hand, has been receiving a lot of pressure to make some improvement which led the company to get a new CEO.
With the acquisition, Tech Data will be saving up to $100 million on a yearly basis in as little as two years.
The shares of Avnet and Tech Data rose impressively with 7 and 22 percent respectively which is said to be the reason investors were not really perturbed about the sealing the deal with the full process to be completed in the first part of 2017.