Tech Data has completed its acquisition of the Technology Solutions business from Avnet, with the US$2.6 billion deal rubber stamping the distributor’s move into Australia and New Zealand.
Following years of speculation and channel conjecture, the world’s second largest distributor first announced its intention to acquire its rival in September 2016, with the deal now confirmed less than six months later.
“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,” Tech Data CEO, Bob Dutkowsky, said.
“Our combined company is perfectly positioned at the epicentre 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.”
Dutkowsky said the addition of Technology Solutions “significantly broadens” Tech Data's value-added distribution business, increasing the company's ability to help its partners capitalise on next-generation technologies across the world.
In addition, Dutkowsky believes the acquisition will enhance the go-to-market capabilities of the distributor with complementary skills, expanded vendor relationships and new customer sets.
“Our organisations' common cultures, shared values and commitment to providing a world-class customer experience will serve as the foundation for the new Tech Data,” Dutkowsky added.
“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 organisations."
Specifically, the combined company will operate from a larger and more balanced geographic footprint, including a presence in the Asia Pacific region, a new market for Tech Data.
Globally speaking, the company has operations in 40 countries, with 14,000 employees serving approximately 115,000 customers in more than 100 countries.
Following closure of the move, Tech Data has also announced its global executive leadership, as well as several new regional and global roles, which will report to Dutkowsky.
Current Avnet Asia Pacific President, William Chu, will continue in the role with the acquisition now complete, joining fellow regional heads Joe Quaglia and Patrick Zammit across Americas and Europe respectively.
The trio will report to COO, Rich Hume, who joins a leadership board of Chuck Dannewitz (CFO), Beth Simonetti (Chief Human Resources Officer), John Tonnison (CIO) and David Vetter (Chief Legal Officer).