The Channel logo

News

By | Paul Kunert 26th October 2012 14:37

EC watchdogs clear Tech Data gobble of SDG

$350m deal gets green light, Tech Data raises funds, should all be tickety boo

Tech Data's acquisition of Specialist Distribution Group (SDG) has been given the green light from competition regulators in the European Commission.

As is customary with takeovers of large firms, the bureaucrats on the mainland wanted to consider the implications of the $350m (£217.4m) deal.

"The Commission concluded that the transaction would not raise competition concerns, because the parties have moderate market shares and will continue to face a number of competitors in all the markets concerned," said the EC in a canned statement.

the regulators looked at the potential impact on the servers and storage sectors in the European Economic Areas, specifically the UK, France and the Netherlands.

Last month Tech Data completed the public offering of $350m senior notes.

This was to fund the buy of SDG – with any remaining proceeds to be used to for "general corporate purposes".

So in clearing these hurdles the deal should close fairly sharpish, handing new vendor lines to Tech Data - including those of IBM, VMware and Citrix - and adding a bunch of new staffers. ®

alert Send corrections

Opinion

Chris Mellor

Drives nails forged with Red Hat iron into VCE's coffin
Sleep Cycle iOS app screenshot

Trevor Pott

Forget big-spending globo biz: it's about the consumer... and he's desperate for a nap
Steve Bennet, ex-Symantec CEO

Chris Mellor

Enormo security firm needs to get serious about acquisitions

Features

Windows 8.1 Update  Storeapps Taskbar
Chinese Buffet self-service
Chopping down the phone tree to scrump low-hanging fruit
An original member of the System/360 family announced in 1964, the Model 50 was the most powerful unit in the medium price range.
Big Blue's big $5bn bet adjusted, modified, reduced, back for more
Microsoft CEO Satya Nadella
Redmond needs to discover the mathematics of trust