Tech Data to Broaden Public Sector Business with DLT Acquisition

Tech Data has signed an agreement to acquire DLT Solutions, an almost 30–year-old company that provides IT solutions for the U.S. public sector.

Upon closing, which is expected before the end of the year, DLT Solutions will become a wholly owned subsidiary of the distributor.

Tech Data’s Richard Hume

“This acquisition reflects our strategy of delivering higher value – strengthening our end-to-end portfolio and accelerating our capabilities in next-generation technologies – and we look forward to welcoming DLT’s colleagues to Tech Data,” said Rich Hume, chief executive officer at Tech Data. “The addition also demonstrates how our portfolio optimization actions are freeing up capital, which is enabling us to invest in high-quality growth opportunities that advance our strategy and provide higher-value solution offerings to our partners.”

Tech Data said partners will reap many benefits from the acquisition as it will allow the company to develop new public sector opportunities for them. The distributor also will simplify the complexity of the public sector for partners and provide niche, specialized solutions they can use to better serve this market. Tech Data furthermore will be better able to offer partners a broader set of capabilities, including an expanded portfolio and deeper specialization in next-generation technologies, as well as access to multiple government contract vehicles.

DLT Solutions is a solutions aggregator for the public sector – federal, state and local markets – and has a broad portfolio of more than 50 in-house contract vehicles. The company creates go-to-market strategies that its technology vendors and channel partners leverage to deliver business-oriented solution to government customers.

DLT Solutions’ Art Richer

The company’s public-sector aggregation platform, in use for almost 30 years, drives more than $1 billion and 30,000 transactions per year, according to Art Richer, CEO at DLT Solutions. He also notes in a blog that DLT’s Public Sector Market Knowledge leverages in-house expertise in strategic technology areas such as cloud, AI and big data, and cybersecurity.

“We are thrilled to join the Tech Data team,” said Richer. “This acquisition combines our public-sector expertise and capabilities with a leading Fortune 100 company known for creating value across the technology ecosystem. It represents an opportunity to apply our unique public sector value proposition to a broader set of vendors and partners.”

Earlier this month, Channel Futures reported that Tech Data was the target for an acquisition by Apollo global Management, a private equity firm — to the tune of almost $5 billion.