CLEARWATER, Fla., Aug. 3, 2010 (GLOBE NEWSWIRE) -- Tech Data Corporation (Nasdaq:TECD), a leading distributor of IT products, today announced it has entered into an agreement to acquire the stock of Triade Holding, a privately-held portfolio of leading value added distributors of consumer electronics, mobility and information technology (IT) products in Benelux and Denmark. In a related transaction, Brightstar Europe, a joint venture between Brightstar Corporation and Tech Data, has announced an agreement to acquire Triade company, Mobile Communication Company (MCC), a mobility specialist in Benelux.The transactions are subject to approval of the EU regulatory authorities and are expected to be completed during the third quarter of fiscal 2011.
The acquisition of Triade Holding significantly expands Tech Data's product, vendor and customer portfolios throughout the Benelux region and Denmark, leverages the company's pan-European infrastructure and adds approximately 450 skilled employees. The transaction is expected to be immediately accretive to fiscal year 2011 earnings, excluding acquisition and integration costs.
For the twelve months ended January 31, 2010, Triade generated sales of EUR 929 million (approximately $1.2 billion), broken down by product group as follows: Approximately 35 percent consumer electronics, 39 percent mobility and 26 percent IT. The transaction's total enterprise value, including assumed debt, is estimated at EUR 145 million (approximately $189 million), of which approximately 45 percent relates to MCC, to be acquired directly by Brightstar Europe and representing the joint venture's first acquisition of significant size. Upon completion of the acquisition, results for MCC will not be consolidated in Tech Data's financial statements. Instead, Tech Data will account for 50 percent of MCC net income through an "income from joint venture" line item below operating income.
"This major transaction validates our diversification strategy, moving Tech Data into high growth, specialty product categories, and will contribute to achieving our stated financial goals," said Robert M. Dutkowsky, Chief Executive Officer of Tech Data Corporation. "The addition of Triade's portfolio of companies complements and strengthens our existing European broadline business, accelerates our entry into Europe's consumer electronics market, and expands our Brightstar Europe joint venture's mobility footprint, all of which provide a compelling platform for growth."
Henk Makaske, Chief Executive Officer of Triade Holding, said, "Joining forces with Tech Data will position our Triade Holding companies to continue their successful growth in the future. Our experience in the Dutch, Belgian and Danish markets across IT, consumer electronics and mobility, combined with the financial strength and superior execution capabilities of Tech Data will create excellent opportunities to deliver long-term benefits to our customers and vendors, as well as further career opportunities for our employees."
Forward-Looking Statements
Certain matters discussed in this news release are forward-looking statements, based on the company's current expectations that involve a number of risks and uncertainties. Factors that could cause actual results to differ materially include the following: downturns in the global economy; intense competition both domestically and internationally; narrow profit margins; dependence on information systems; potential adverse effects of acquisitions; exposure to natural disasters, war and terrorism; dependence on independent shipping companies; the impact of increases in freight and handling fees charged to customers; potential impact of labor strikes; risk of declines in inventory value; product supply and availability; changes in vendor terms and conditions; loss of significant customers; credit exposure due to the deterioration in the financial condition of our customers; the inability to obtain required capital; fluctuations in interest rates; foreign currency exchange risks and exposure to foreign markets; the impact of changes in income tax and other regulatory legislation; changes in accounting rules; and the volatility of common stock. Additional discussion of these and other factors affecting the company's business and prospects is contained in the company's periodic filings with the Securities and Exchange Commission, copies of which can be obtained at the company's Investor Relations website at www.techdata.com. All information in this release is as of August 3, 2010. The company undertakes no duty to update any forward-looking statements herein to actual results or changes in the company's expectations.
About Tech Data
Tech Data Corporation (Nasdaq:TECD) is one of the world's largest distributors of technology products from leading IT hardware and software producers. Tech Data serves more than 125,000 IT solution providers in over 100 countries. Every day, these value-added resellers depend on Tech Data to cost-effectively support the technology needs of end users, including small and medium businesses (SMB), large enterprises and government agencies. Ranked 109th on the FORTUNE 500(R), Tech Data generated $22.1 billion in net sales for its fiscal year ended January 31, 2010. To learn more, visit www.techdata.com.
About Brightstar Europe
Brightstar Europe is a joint venture between Tech Data Corporation and Brightstar Corp. The company is headquartered in the United Kingdom and has access to sales offices in 16 countries and nine logistics centres throughout the continent. It distributes mobile phones and other wireless devices to a variety of customers including mobile operators, dealers, agents, retailers and e-tailers throughout Europe.
About Triade Holding
Triade Holding is a leading value added one-stop distributor specialised in the field of consumer electronics, mobility and information technology. The company is privately owned and its shareholders are ABN AMRO Participaties, Friesland Bank Investments and management. Operating in five countries in Europe, the company's head office is located in the Netherlands. Triade delivers products from over 120 vendors to retailers, e-tailers and resellers, serving a market of more than 5000 sales outlets daily.