Tech Data to buy Avnet Technology Solutions for USD 2.6 bln 

Avnet has agreed sell its Technology Solutions division to rival Tech Data for USD 2.6 billion. The company said it will focus going forward on design and supply chain services, and especially high growth areas like the IoT, embedded solutions and critical platforms. It will partner with Tech Data on serving the IoT solutions market.

The Technology Solutions group is expected to perform better as part of Tech Data. Avnet’s Technology Solutions operating group is a global IT solutions distributor serving resellers in more than 80 countries. It provides products, marketing, training, resources and services that span the cloud to the data centre and encompass the entire IT lifecycle.

Avnet will receive USD 2.4 billion in cash and 2.8 million shares in Tech Data as payment. The company expects to realise a gain of USD 3.75-4.75 per share. The closing of the transaction is expected in the first half of 2017, subject to regulatory approvals.

Source: Cellular News