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.
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 gives solution providers the capability to customise their own online cloud store or integrate with the Tech Data Cloud Solutions Store. Additionally, the company announced an agreement with Global Knowledge, a leading provider of learning services and professional development solutions, to provide cloud business assessments through its Tech Data Cloud business unit. The announcements were made in conjunction with Tech Data's participation in Microsoft's 2016 Worldwide Partner Conference (WPC), held last week in Toronto.
"Our enhancements to the StreamOne platform enable solution providers to do what they do best—solve their clients' problems—while leaving the rest to us", said John Tonnison, executive vice president, Cloud Computing and chief information officer at Tech Data. "Tech Data's ability to offer the right mix of customised solutions, education, and programs for our customers uniquely positions us to propel them on their individual cloud journeys. Combining our competence and strength in the on-prem market with our strategic investments in the mobile, cloud, and IoT markets, Tech Data is well-equipped to empower our resellers in the hybrid world, where the business of IT will soon take place."
Tech Data's StreamOne platform now offers more flexibility and functionality for solution providers and managed service providers (MSPs), who can now launch a private label cloud store or integrate Tech Data Cloud’s services into an existing e-commerce environment. Tech Data Cloud has also developed 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 CSPs. The enhancements to StreamOne include:
Tech Data Cloud's Private Label Marketplace, powered by StreamOne, enables solution providers and MSPs to implement a customizable e-commerce platform powered by the Tech Data Cloud Solutions Store. The Private Label Marketplace provides a complete purchasing experience for Microsoft CSP products, including automated provisioning and flexible billing cycles, as well as the ability to bundle Microsoft products with a partners' services or as add-ons.
StreamOne APIs enable partners to leverage their existing e-commerce and in-house systems while connecting to the Tech Data Cloud Solution Store for cloud service catalogues, ordering, subscription management, and billing management. Tech Data offers a complete set of StreamOne APIs, as well as partner support.
Microsoft Azure available via the Microsoft CSP program provides partners with instant access to pre-configured bundles, including backup, site recovery, file storage, SQL Server, and Virtual Machines. The fully automated process enables partners to purchase, provision, and manage cloud solutions in a true consumption-based model.
These new offerings are available immediately in the United States and Europe through Tech Data offices in Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Poland, Portugal, Slovakia, Spain, Sweden, Switzerland and the United Kingdom. Availability in Canada is expected in the autumn.
"As the amount of data businesses are generating increases, their capacity—both in terms of physical infrastructure and staff bandwidth—can't keep up, and the need for more hybrid and cloud environments will become increasingly necessary", said David Smith, vice president, Worldwide SMB at Microsoft. "Tech Data's StreamOne platform has evolved to help resellers meet the new demands of the market and we look forward to their continued partnership as our solution providers adopt the future of cloud."
Tech Data Cloud has also added Global Knowledge to its Cloud Mastery Journey, a program designed to help solution providers build fully-optimised cloud businesses. Through the agreement with Global Knowledge, Tech Data Cloud now offers the Cloud Mastery Assessment (CMA) tool, which assesses cloud practice capabilities and provides practical resources to help build successful cloud partner practices. Once the CMA tool has been used to identify areas for operational improvement, partners can then engage in consultant-led workshops to accelerate a personalised journey specifically tailored to fit their cloud business practice. The CMA tool is now available to solution providers through Tech Data Cloud in the United States and Europe, with availability in Canada coming this autumn.
Broadliner Tech Data has launched its new Internet of Things (IoT) business practice, Smart IoT Solutions by Tech Data. The new practice, designed to aggregate IoT solutions and provide a simplified route to the rapidly expanding IoT market for solution providers, will be led by company veteran Victor Paradell, vice president, IoT Solutions, Europe. The announcement was made in conjunction with Tech Data's participation in Microsoft's 2016 Worldwide Partner Conference (WPC), being held this week in Toronto.
According to Gartner in their "Forecast Analysis: Internet of Things - Endpoints, Worldwide, 2015 update" published in December 2015, endpoints of IoT are predicted to grow at a 32% compound annual growth rate (CAGR) from 2013 through 2020, reaching an installed base of 21 billion units, with almost two-thirds of them consumer applications. With such explosive growth expected, solution providers need clarity, education, and an effective route to market.
"If you were to ask 100 people in the IT channel what IoT means to them, you would get almost 100 different answers - and most would be correct", said Paradell. "As IoT continues to expand and surround us in our lives, much remains to be understood about the market. Tech Data is positioned at a very advantageous point in the IoT ecosystem - right in the middle - to provide our customers with all the pieces necessary to deploy complete IoT solutions. Through our new Smart IoT Solutions business practice, we are helping solution providers understand and enter the IoT market, as well as capitalise on the opportunities that currently exist within it."
Smart IoT Solutions by Tech Data enable system integrators, value-added resellers (VARs), and managed service providers (MSPs) to build their IoT businesses. As an IoT solutions aggregator, Tech Data leverages its trusted partnerships within its technology partner ecosystem, as well as its strength and expertise in the solution provider market, to help customers deploy IoT solutions to their end users - from fulfillment and security to data analytics and applications. Through Tech Data's smart service enablement framework, the Smart IoT Solutions team also offers the value-added services needed for solution providers to connect the dots from solution design to data-driven services. The Smart IoT Solutions practice will be primarily focused on four key verticals: manufacturing, transportation and logistics, retail, and smart spaces, which include building safety and security, smart parking, and energy optimisation. Paradell joined Tech Data in 1996 as a team leader in the company's IT department and has held positions of increasing responsibility and scope over the past 20 years. Prior to his current role, he served as vice president, Operational Effectiveness and Strategy for Tech Data Europe from March 2013 to March 2016. He holds a bachelor's degree in computer science engineering from The Autonomous University of Barcelona (UAB) and an MBA from the ESADE Business School in Barcelona, Spain.
Broadliner Tech Data has unveiled a new Europe-wide agreement with the Esselte Group, a supplies manufacturer, to distribute products from its Leitz brand of premium products for business professionals. Tech Data customers across the company's entire European footprint now have easy access to three of Leitz's product ranges: Icon for digitally enhanced labelling, including smart technology, and iLAM for easy document lamination through its broadline businesses in Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Poland, Portugal, Slovakia, Spain, Sweden, Switzerland and the United Kingdom and Complete, which offers high-quality mobile professional accessories, throught its Mobile Solutions offices in Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Poland, Portugal, Spain, Sweden, Switzerland and the United Kingdom.
"We are very excited to offer Leitz's products to our European reseller community. Their long heritage and innovative approach in the design and manufacture of office supplies shines through in the products we are now offering", said Hugo Graça, vice president, PC Components, Printers & Supplies at Tech Data Europe. "Tech Data's scale, coupled with our strength in online sales, offers a great platform to accelerate the growth of these product lines across Europe. Furthermore, the addition of this leading brand underlines Tech Data’s leadership position in the supplies and accessory markets."
"We are excited to team up with Europe's number-one technology distributor, Tech Data"; said Paul Gouka, vice president, Global Accounts & International Sales at Esselte. "We are confident that our partnership with Tech Data will enable us to further strengthen our position in the technology distribution channel for our new product ranges Leitz Icon, Leitz Complete and Leitz iLam. Tech Data's reseller network fits perfectly into the strategy of Esselte and we feel confident that together we will accelerate the success of the Leitz product groups."
Switzerland: broadliner Alltron, which is about to launch its own cloud platform1, has unveiled a distribution deal with security editor AppRiver2. Its competitor ALSO has strengthened its value offer with Alcatel-Lucent Enterprise voice and data solutions and ESET antivirus. The broadliner has also replaced leaving Herbert Gasser with Tom Brunner, the former CEO of Alltron, who thus becomes its new volume and broadline director3. Network and security VAD Boll Engineering has inked a distribution deal with access control editor Wallix4. Broadliner Ingram Micro has extended its European distribution partnership with network vendor Allied Telesis to its local office5. Its Advanced Solutions division will push Allied Telesis midrange and corporate solutions through its VAR and system integrator network. Finally, Ruedi Moll becomes the new managing director of the value business of broadliner Tech Data, including its TD Azlan infrastructure VAD division6. He replaces Jens Heitmann, who has been promoted to Business Development Manager Cisco EMEA, based in the Austrian office of the distributor (source: Inside Channel Schweiz 1, 2, 5 and 6, IT Markt Schweiz, IT Reseller Schweiz 3 and 4).
Tech Data Schweiz AG
Tech Data Schweiz AG
Dhr. Pascal Murciano
Oprichtingsjaar : 1983