July 11, 2012
/PRNewswire/ -- Brightstar Corporation, the world's largest specialized wireless distribution and services company, has reached an agreement to sell its 50 percent ownership interest in Brightstar Europe Limited (BEL) to Tech Data Corporation (Nasdaq: TECD). Under the terms of the agreement, Tech Data will pay Brightstar approximately $165.6 million in cash. Brightstar will use the proceeds from the transaction for investment, expansion, and general corporate purposes. As a result of this transaction, Brightstar Corporation's book value will increase by approximately US$92 million to approximately US$675 million on a pro-forma basis as of March 31, 2012.
"Tech Data has been a great partner, and in just five years, we have jointly grown BEL from a startup to a leader in the European mobility distribution industry," said R. Marcelo
Chairman and CEO. "We are now looking forward to operating in Europe under a
Brightstar Corp fully-owned subsidiary and making our broad suite
of services, including distribution, available to customers across Europe."
As part of the agreement, BEL's handset protection & insurance and buy-back & trade-in customers will be transferred to, and serviced, by Brightstar. The agreement also provides the opportunity for certain employees at BEL to join Brightstar's European operations in order to continue servicing the handset protection & insurance and buy-back & trade-in customers. In addition, Tech Data will work closely with Brightstar to service certain Brightstar customers in Europe, and both Brightstar and Tech Data remain committed to TDMobility, a 50/50 joint venture in the U.S.
Brightstar will now focus on growing its European business and geographic footprint through organic growth and strategic acquisitions. Brightstar will continue to offer customers across Europe its portfolio of industry leading services including: value-added distribution, supply chain optimization, multi-channel retail services, and the abovementioned handset protection & insurance and buy-back & trade-in solutions.
About Brightstar Corporation
Brightstar Corp is the world's largest specialized wireless distribution and services company with annual revenues exceeding US$5.7 billion for the period ending March 31, 2012, revenues surpassing US$1.3 billion for the quarter ending March 31, 2012, and total assets exceeding US$2.8 billion. With a local presence on 6 continents, Brightstar's 43,000 customers include many of the world's leading manufacturers, operators, and retailers. Brightstar's industry leading services portfolio includes value-added distribution, supply chain optimization, handset protection & insurance and buy-back & trade-in, and multi-channel retail services.
In 2011, Brightstar acquired eSecuritel, a leader in handset insurance as well as Flipswap Services, a leader in buy-back and trade-in solutions.