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© ra2studio dreamstime.com Electronics Production | September 19, 2016

Avnet to sell technology solutions business to Tech Data for $2.6 billion

Avnet has entered into an agreement to sell its Technology Solutions operating group to Tech Data in a stock and cash transaction valued at approximately USD 2.6 billion.
Under the terms of the agreement, Avnet will receive USD 2.4 billion in cash and 2.8 million shares of Tech Data common stock, currently valued at approximately USD 200 million.

“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, chief executive officer 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,” Amelio continued.

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