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Tech Data Corporation Announces Agreement To Acquire SDG Distribution Companies In UK, France And The Netherlands

CLEARWATER, Fla., Sept. 5, 2012 (GLOBE NEWSWIRE) -- Tech Data Corporation (Nasdaq:TECD), a leading distributor of technology products, today announced it has entered into an agreement to acquire the shares of several distribution companies belonging to Specialist Distribution Group (SDG), the distribution arm of Specialist Computer Holdings (SCH), a privately-held IT services company headquartered in the UK. SDG is a leading value-added distributor of enterprise-focused IT products in the UK, France and the Netherlands. The transactions are subject to approval of the EU regulatory authorities and are expected to be completed by the fourth quarter of fiscal 2013.

SDG goes to market under a number of brands throughout the EMEA region. Under the terms of the agreement, Tech Data would acquire the following SDG companies: SDG, IQ Sys and ISI Distribution in the UK; ETC and Best'Ware in France; and ETC in the Netherlands. The acquisition of these companies strengthens Tech Data's enterprise business, Azlan, as well as its broadline offerings in Europe, expanding its vendor and customer portfolios, and leveraging its pan-European infrastructure. The acquisition is expected to add a team of more than 600 experienced individuals with domain knowledge in specific product, customer and operational disciplines.

For their fiscal year ended March 31, 2012, the companies to be acquired generated third-party sales of approximately EUR 1.4 billion (approximately $1.75 billion), across a broad portfolio of data center, software and broadline products from industry-leading suppliers. The product mix was comprised as follows: approximately 40 percent data center products (including servers, storage and networking); approximately 20 percent software (predominantly data center-focused such as virtualization and security); and approximately 40 percent broadline products (including PC's and peripherals). The terms of the agreement also call for a supplier agreement, whereby the seller, through its IT reseller business, will have annual purchase commitments through Tech Data for a period of five years which the company estimates will add incremental annual sales of EUR 400 million (approximately $500 million). Total consideration payable under the terms of the agreement is estimated to be EUR 277 million (approximately $350 million), subject to customary adjustments, which includes a purchase premium of approximately EUR 170 million (approximately $215 million).

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