Broadliner Tech Data has been selected as a key global distribution partner by Dell EMC, the leading provider of converged infrastructure, servers, storage and data protection technologies. Tech Data becomes a key global distributor that will carry the entire Dell EMC product line in both the Americas and Europe. Reseller partners across Tech Data's entire footprint now have access to the full Dell EMC portfolio, including an extensive and innovative range of flash storage, hybrid cloud, and advanced data center solutions. "We appreciate Dell EMC's continued trust in Tech Data and are excited to continue to serve as a global partner to help accelerate their growth in the channel", said Rich Hume, executive vice president and chief operating officer at Tech Data. "With our end-to-end expertise, strategic focus on helping our partners capitalize on third-platform technologies, and our longstanding relationships with Dell and EMC, we are well-positioned to help solution providers capture growth opportunities with the newly combined Dell EMC."
"As we launch the extraordinary Dell EMC Partner Program, we are thrilled to continue our partnership with Tech Data", said Jim DeFoe, senior vice president, Dell EMC. "Tech Data is well positioned to help Dell EMC resellers grow their businesses by selling best-in-class technology and services. With Tech Data, our resellers have an excellent opportunity to maximize the value of distribution." In the EMEA region, Dell EMC is distributed by Tech Data in Austria, Belgium, Czechia, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Poland, Portugal, Spain, Sweden, Switzerland and the United Kingdom.
Broadliner Tech Data Europe is creating a complete Microsoft cloud ecosystem that will enable partners to deliver the Microsoft's entire software stack, along with complementary solutions, quickly and efficiently through a single, integrated management platform. All of Microsoft's cloud-based solutions, including Microsoft Office 365, Microsoft Azure and Microsoft Enterprise Mobility + Security (EMS), are available through the Tech Data Cloud Solution Store, powered by the company’s StreamOne platform, as part of the Microsoft Cloud Solutions Provider (CSP) program. This means resellers, VARs and MSPs can offer the full range of Microsoft solutions alongside complementary offerings through a single portal, and also make use of the monitoring and billing capabilities of Tech Data's platform to manage their customer accounts. "Microsoft solutions are widely used in most end-user organisations and many customers now want to use those applications in the cloud, so it's important that resellers can support the entire stack", said Reza Honarmand, vice president, Cloud, Europe at Tech Data. "In addition, customers need efficient ways to manage and integrate applications and ensure their data is properly backed-up, safe and secure. Through our Cloud Solution Store, Tech Data is providing not only the complete Microsoft suite under the CSP program, but also a whole range of complementary solutions and services that will enable VARs and MSPs to add value to the services they offer and enhance their long-term business prospects."
David Smith, vice president, Worldwide SMB for Microsoft, stated: "the cloud offers tremendous opportunity for our partners and mutual customers. By creating its Microsoft-centric cloud ecosystem, Tech Data is making it simple for our partners to put our best-in-class cloud solutions in the hands of customers."
Further strengthening Tech Data's portfolio of value-added services, the company has recently signed pan-European partnership agreements with the following four leading providers of complementary solutions and plans to make additional services available over the next several months:
Tech Data European boss Cano planning exit
Tech Data's European boss Nestor Cano is planning to retire from the distributor once the integration of Avnet TS is complete, should the deal get the go-ahead. Tech Data announced plans to snap up Avnet Technology Solutions last September in a deal worth €2.35b, which is expected to close in the first half of this year. Should the deal go ahead, Cano will continue in his role throughout the integration process, but will then retire. Cano joined Tech Data through the Computer 2000 acquisition in 1989 and served in various management positions in Spain and Portugal, before being promoted to regional managing director. A number of US and global roles followed before he become president of Europe for the firm in 2007 (source: Channelweb UK).
Broadliner Tech Data has unveiled enhancements to StreamOne, the company's platform that powers its award-winning Cloud Solutions Store. StreamOne, which enables partners to offer and scale cloud and subscription services, now features an analytics dashboard that displays real-time Microsoft Azure consumption and launches proactive notifications when usage charges exceed set thresholds. The enhancements will be available to solution providers and managed service providers (MSPs) in the United States and Europe.
"Tech Data is the first distributor to offer this kind of insight into Microsoft Azure", said John Tonnison, executive vice president, Cloud Computing and chief information officer at Tech Data. "These enhancements deliver on our commitment to enabling our solution providers to lead with, support and manage Azure subscriptions. With the new monitoring and budgeting capabilities, we are giving our solution providers better visibility to manage and monitor their clients' consumption and mitigate credit risk."
Tech Data's StreamOne platform is more deeply integrating with Microsoft Azure, offering solution providers and MSPs visibility into aggregate Azure consumption by customer tenant. The dashboard will provide details around Azure usage, monthly tracking and usage predictions, and overall budget and credit limits. In July, Tech Data announced enhancements to StreamOne that enable solution providers to launch a private label cloud store or integrate Tech Data Cloud services into an existing e-commerce environment. Tech Data Cloud has also recently delivered APIs to validate Microsoft Partner Network (MPN) identification and existing Cloud Service Provider (CSP) tenants, improving processes to migrate customers from Microsoft's Advisor and Open programs to Microsoft CSP. Tech Data Cloud offers solution providers and MSPs the capabilities needed to capitalize on cloud opportunities in the marketplace, including the tools to optimize and transform their businesses. The Tech Data Cloud team offers education, marketing, business planning, demand creation, sales training and services to enable partners to successfully sell cloud products and solutions.
American multispecialist Avnet has entered into an agreement to sell its Technology Solutions operating group to broadliner Tech Data in a stock and cash transaction valued at approximately €2.35b, in what is surely the IT distribution biggest merger to date. The sale of this business provides both Avnet and Tech Data with immediate opportunities to focus on core strategies and scale their respective businesses, ultimately delivering greater profitability to their shareholders.
"We believe the acquisition of Technology Solutions by Tech Data is the best decision for our employees, customers, suppliers and shareholders. This transaction presents us with the best strategic path for Avnet's future success and profitability, and puts Technology Solutions in position to achieve breakthrough business results with Tech Data", said William Amelio, CEO of Avnet. "Moving forward, Avnet will focus its resources and investments on becoming a leader in design chain and supply chain services not only for our current customers and suppliers, but also for new markets. We will drive targeted investments in embedded solutions, Internet of Things (IOT) and critical digital platforms. By investing in these high growth areas, we can expand the breadth of our portfolio and attract new customers worldwide who depend on us to deliver world-class solutions."
Avnet's Technology Solutions operating group is an IT solutions distributor focusing on the datacenter, network, storage and security markets in more than 80 countries (in Austria, Belgium, Czech Republic, Denmark, France, Germany, Hungary, India, Ireland, Italy, the Netherlands, Poland, Portugal, Romania, Slovakia, Spain, Switzerland, Turkey and the United Kingdom for the EMEA region, which will all reinforce local TD Azlan teams, or ought to create new business, such as in Hungary, India, Romania or Turkey). It provides next generation solutions, marketing, training, resources and services that span the cloud to the data center and encompass the entire IT lifecycle. They work with value-added resellers to make it easier and more affordable to enter and excel in high-growth technology and vertical markets locally and around the world.
"We are excited to announce this transformative transaction, which creates a premier global IT distributor with the most diverse end-to-end solutions from the data center to the living room", said Bob Dutkowsky, CEO of Tech Data. "This combination complements our value-added distribution capabilities in Europe and the Americas, while establishing Tech Data's presence in Asia-Pacific, which will be a new market for us. As a result of the enhanced value proposition created through this transaction, Tech Data will be even better positioned to capture opportunities in next-generation technologies, deliver differentiated value to our customers and vendor partners, support career development for our employees, and generate strong returns for our shareholders. We believe the strategic and financial benefits resulting from this transformative combination are compelling for both our company and our stakeholders. We look forward to welcoming the Technology Solutions team to the Tech Data family and are excited about the future opportunities ahead."
Patrick Zammit, president of the Technology Solutions business, said, "Industry standardisation, innovation and converging technologies have transformed our industry. The broader portfolio created through this combination will enable both businesses to better capitalise on these trends, while also providing new opportunities for Technology Solutions to optimise and expand its offering, as well as unlock value in ways we could not historically. Given the strength of our customer and vendor relationships, our common cultures and values, as well as the skilled and engaged teams at both businesses, I am confident that this is a winning combination."
Tech Data + Technology Solutions: strong platform for growth and value creation
Terms and Financing
Under the terms of the agreement, which was approved by the boards of directors of both companies, Avnet will receive €2.15b in cash and 2.785 million shares of Tech Data common stock, currently valued at approximately €180m and representing an approximate 7% ownership position in Tech Data. Tech Data intends to finance the cash portion of the consideration through a combination of cash on hand, drawings under its existing revolver, and proceeds from a new term loan facility and senior notes, which are backstopped by fully-committed debt financing from BofA Merrill Lynch. Following the close of the transaction, Tech Data will continue to benefit from strong cash flows to support debt reduction and organic growth initiatives. Tech Data expects to maintain an investment-grade profile and to reach a target leverage ratio of approximately 2.5x total debt-to-adjusted EBITDA within 18 to 24 months. The deal is of course subject to the approval of competition authorities throughout the world.
Creation year : 2009