The Channel logo

News

By | Kelly Fiveash 27th March 2007 15:16

Tech Data abandons Middle East

Expects up to $7m loss

Tech Data, the world's second biggest technology distributor, is withdrawing from the Middle East with Aptec stepping in to fill the hole left in the region.

In a filing made to the Securities and Exchange Commission Tech Data said that it expects to see a loss of up to $7m for the first half of fiscal 2008 because of the retreat.

The firm cited "increasingly difficult" regional market conditions for the decision to withdraw.

It posted a net loss of $142m on sales of $9.88bn for its financial year ended 31 January 2007.

On 21 March Tech Data confirmed it will hand over up to 14 franchises and distribution agreements to the newly formed Tech Data Middle East, a wholly-owned subsidiary of Aptec Holdings.

Dr A Ali Baghdadi, chairman and CEO of Aptec, said: "We can see tremendous opportunities for growing this business and broadening Aptec's footprint across the Middle East and beyond." ®

alert Send corrections

Opinion

Woman cuddles 'sly-looking' Fennec fox. Photo by Shutterstock
Cartoon of employee asking wky boss makes hium wear suspenders (while pincer through open trapdoor remains poised above his head) illustration by Cartoon resource for Shutterstock

Frank Jennings

It's not like my boss painstakingly nurtured the contacts, right?

Features

Girl and computer, photo via Shutterstock
Middle-class terror of engineering also part of problem
Nerd fail photo via Shutterstock
Shouting match
Single market vs. rest of the world