Tech giant's $2.6B deal awaits European approval

CLEARWATER — Tech Data Corp. announced recently that its $2.6 billion deal to buy Avnet Inc.'s technology solutions business is proceeding and could close before the end of this month.

The Clearwater-based company acknowledged in a statement, however, despite the “substantial progress” that has been made, that the purchase of the Avnet unit still must receive final regulatory approvals from the European Commission and others.

Tech Data, an IT services and products distributor that generated more than $26 billion in revenue in its fiscal year ended Jan., 31, 2016, and ranks as one of the largest companies headquartered along the Gulf Coast, announced a “definitive agreement” to buy the Avnet business in mid-September 2016 for $2.4 billion in cash and nearly 2.8 million shares of common stock.

Tech Data expects to receive up to $200 million in tax benefits from the transaction and $100 million in costs savings by 2019 from the purchase.

“This combination compliments our value-added distribution capabilities in Europe and the Americas, while establishing Tech Data's presence in Asia-Pacific, which will be a new market for us,” says Bob Dutkowsky, Tech Data's CEO, in a statement from last fall.

“As a result of the enhanced value proposition created through this transaction, Tech Data will be even better positioned to capture opportunities in next-generation technologies, deliver differentiated value to our customers and vendor partners, support career development for our employees and generate strong returns for our shareholders.”