American broadliner Tech Data has completed its acquisition of the Technology Solutions business from its competitor Avnet. The combination creates a premier global end-to-end IT distributor with unmatched capabilities and the most diverse solutions from the data center to the living room. "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", said Bob Dutkowsky, chief executive officer of Tech Data. "Our combined company is perfectly positioned at the epicenter 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. Our organizations' common cultures, shared values and commitment to providing a world-class customer experience will serve as the foundation for the new Tech Data. 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 organizations."
The addition of Technology Solutions significantly broadens Tech Data's value-added distribution business (aka Azlan), increasing the company's ability to help its partners capitalize on next-generation technologies while enhancing its go-to-market capabilities with complementary skills, expanded vendor relationships, and new customer sets. The combined company has a larger and more balanced geographic footprint, including a presence in the Asia-Pacific region, a new market for Tech Data. The company has operations in 40 countries, with 14,000 employees serving approximately 115,000 customers in more than 100 countries. The company also announced its global executive leadership, as well as several new regional and global roles. Reporting to CEO Bob Dutkowsky are:
In Europe, Tech Data has also announced its European Executive Board, which will be led by Zammit:
The total purchase price at close was approximately €2.35 billion (subject to certain post-close adjustments), including €2.17 billion in cash, and 2,785,402 shares of Tech Data stock, representing approximately 7.3% of Tech Data's shares outstanding (after issuance of the new shares). Tech Data financed the cash portion of the purchase price through a combination of €900 million from its recent public debt offering and €900 million of bank term loans, and the remainder from drawings under other credit facilities and cash on hand. The transaction is expected to be significantly accretive to Tech Data's non-GAAP earnings per share in the first full year. The company expects to achieve annual cost savings of approximately €90 million within 24 months, with one-time costs to achieve these cost savings expected to be approximately €135 million.
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).
Southern Europe: in Spain, broadliner Esprinet has started the distribution of the smart home solutions from Wattio. Its competitor Infortisa has acquired mobile accessory vendor X-One, whose products it will of course distribute in the country1. And network and security VAD Ireo has inked a partnership with Alcatel-Lucent Enterprise to distribute their full network infrastructure offer2. In Italy, Chinese accessory vendor Rapoo has appointed broadliner Datamatic as its first distributor in the country. Broadliner Tech Data has promoted Antonella Baldassare, until now Corporate Communication Manager, to Marketing Communication Manager. She will report to Renato Cosenza, Marketing Communication & TD Datech Director at Tech Data Italia. Its competitor Cometa has opened up a new line of products, dedicated to the healthcare market. The first new brand to be included in this new business is the Spanish startup Oblumi, which has developed an infrared digital thermometer for smartphones (source: Globb Partner España, Channel Partner España 1 and 2, 01Net Italia, Top Trade Informatica Italia).
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.
TD Datech Italia
TD Datech Italia
General manager :
Mr Renato Cosenza
REA : MI146-227323