Tech Data Completes Avnet Technology Solutions Buy

**Editor’s Note: Please click here for a recap of the biggest channel-impacting mergers in January.**

Tech Data on Monday wrapped its acquisition of Avnet Technology Solutions in a distribution agreement of gigantic proportions.

Look for Tech Data, No. 108 on the Fortune 500, to make a significant leap now that it’s $2.6 billion purchase of Avnet’s Technology Solutions division is in the books. The Clearwater, Florida-based company says combining with Avnet gives it “unmatched capabilities and the most diverse solutions from the data center to the living room.”

“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,” said Bob Dutkowsky, chief executive officer of Tech Data. “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.”{ad}

Tech Data says the acquisition greatly broadens its value-added distribution business, increasing its ability to help its partners capitalize on next-generation technologies. It also enhances Tech Data’s go-to-market capabilities with complementary skills, expanded vendor relationships and new customer sets.

Tech Data now is larger geographically as well, entering Asia Pacific for the first time. The company has operations in 40 countries, with 14,000 employees serving approximately 115,000 customers in more than 100 countries.

Monday’s closing brings new global executive leadership, as well as some new regional and global positions. Among them are Chuck Dannewitz, executive vice president, chief financial officer; Rich Hume, executive vice president, chief operating officer; Beth Simonetti, executive vice president, chief human resources officer; John Tonnison, executive vice president, chief information officer; and David Vetter, executive vice president, chief legal officer.

In conjunction with Tech Data’s announcement, Phoenix-based Avnet looked ahead at a future without its Tech Solutions business.

“Today marks a critical stage in the transformation of Avnet,” said William Amelio, Avnet’s CEO. “We have doubled down on our electronic components and integrated and embedded solutions business, which is complemented by our reach into a broader market of customers in the idea stage through our recent acquisitions of Premier Farnell and Hackster. We will now be able to focus all of our attention and considerable expertise and scale in supporting our customers at every phase of the product life cycle with services that offer a time-to-market advantage. We also have substantial financial resources to further drive our targeted investments in integrated and embedded solutions, IoT and digital platforms to create even more opportunities for makers, entrepreneurs and large manufacturers.”

Avnet now will operate globally under the single name Avnet, dispensing with the business unit moniker “Electronics Marketing.”

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