The Channel logo

News

By | Paul Kunert 11th July 2012 16:28

Tech Data gobbles Brightstar's piece of their Euro biz pie

Coughs $165.5m for equity in Brightstar Europe

Distribution behemoth Tech Data Corp has gulped down Brightstar's 50 per cent stake in the firms' European joint venture for around $165.6m (£106.4m) in cash.

The two wholesalers set up Brightstar Europe in 2007 to share the risks and rewards of tapping up the burgeoning mobility and wireless device space in the region.

Bob Dutkowsky, CEO at Tech Data, said the once "greenfield operation" had turned over $1.8bn in the last fiscal year.

He said the mega-distie was "grateful" to Brightstart for its partnerships, but it was time to say sayonara in the interests of long-term shareholder value.

"We anticipate working with Brightstar on specific European opportunities in the future and remain committed to our TD Mobility joint venture in the US," said Dutkovsky.

A spate of distie acquisition activity emerged in the past few weeks with Ingram Micro confirming its intention to acquire Brightpoint, and Avnet TS hoovering up the remaining operation of Magirus years after it shelled out for the IBM and HP units.

Tech Data said it will cough approximately $165.6m in cash for Brightstar's equity in the venture and settle any outstanding advanced by Brightstar to the joint operation.

The deal is expected to be completed in Tech Data's fiscal third quarter. ®

alert Send corrections

Opinion

WWI French tank picture via Shutterstock
Vinod_Khosla

Chris Mellor

A VC with startup agenda slams established suppliers. Surprised? Neither were we
ZenPad_RealRacing
Boy writes a letter to Santa. Pic via Shutterstock

Kat Hall

Cornwall's win over BT should be a cautionary relationship tale

Features

Eclipse image via Shutterstock
The Azure Portal: Microsoft is betting on cloud for its future business
container_ship_hamburg_shutterstock_648
Michael Dell. Pic by Joi Ito
Cool Texas dude is just your average billionaire