Blockbuster acquisition catapults tech giant into new markets

Wholesale tech products distributor Tech Data, already No. 108 on the Fortune 500, aims to significantly increase market share with a $2.6 billion acquisition of Avnet's technology business.

Tech Data, with $26.3 billion in revenues last year, announced the deal before the markets opened today. The acquisition is for $2.4 billion in cash and 2.785 million shares of Tech Data common stock, according to a statement.

The deal with Phoenix-based Avnet, which distributes electronic components and computer products, will increase Tech Data's capabilities and reach across technologies and geographies, especially the Asia-Pacific market, say Tech Data officials. For example, following the close of the transaction, Tech Data will expand its operations from 21 to 35 countries worldwide, with Europe comprising 53% of the company's $35 billion pro forma revenues, the Americas 44% and Asia-Pacific 3%, the release states.