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CLEARWATER — Tech Data agreed to buy out partner Brightstar Corp.'s 50% stake in a European joint venture formed five years ago for $165.6 million in cash and the repayment of Brightstar's loans to the venture.
Tech Data and Brightstar had formed Brightstar Europe Limited in 2007 to distribute mobile wireless communications devices throughout the continent.
“Our European mobility business is a key element in our strategy of diversifying into higher-growth, higher-return specialty areas,” says Robert Dutkowsky, Tech Data's CEO, in a news release. “What began as a greenfield operation with Brightstar in 2007, is now a well-established, European mobility market leader with sales of approximately $1.8 billion in our last fiscal year.”
The transaction is subject to regulatory review and is scheduled to be completed in the third quarter. Brightstar Europe Limited is currently a subsidiary of Tech Data and the company expects the deal to have a positive impact on earnings in fiscal 2013.
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