CLEARWATER, Fla., Oct. 1, 2010 (GLOBE NEWSWIRE) -- Tech Data Corporation (Nasdaq:TECD), a leading distributor of IT products, announced today that it has completed the acquisition of Netherlands-based Triade Holding B.V. ("Triade"), a privately-held portfolio of leading value-added distributors of consumer electronics, mobility and information technology (IT) products in Benelux, Denmark and Norway. In addition, Brightstar Europe, a joint venture between Brightstar Corp. and Tech Data Corporation, has completed its acquisition of Triade subsidiaries Mobile Communication Company B.V. and M.C.C. Belgium NV ("MCC"), mobility specialists in Benelux. The agreements for these acquisitions were announced August 3, 2010.
"The completion of these exciting transactions enables Tech Data to grow the specialty areas of our business, while strengthening our current broadline activities in selected geographies in Europe," said Robert M. Dutkowsky, Chief Executive Officer, Tech Data Corporation. "Diversifying our business into faster growing, higher-margin specialty areas, while leveraging our existing infrastructure, is positioning Tech Data to achieve its financial goals of improved profitability and return on capital employed."
Tech Data paid approximately EUR 43 million (approximately $58 million) for Triade, and Brightstar Europe paid approximately EUR 40 million (approximately $54 million) for MCC. For the twelve months ended January 31, 2010, Triade (including MCC) 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. Triade's results of operations (excluding MCC) will be consolidated in Tech Data's financial statements subsequent to the date of acquisition, and are expected to be accretive to Tech Data's earnings, excluding acquisition and integration costs.
The acquisition of MCC by Brightstar Europe represents the joint venture's first direct acquisition; therefore, MCC's results will not be consolidated in Tech Data's financial statements. Instead, Tech Data will account for 50 percent of MCC's results through an "income/(loss) from joint venture" line item below operating income.
"Our investment in the Triade portfolio of businesses provides Tech Data with the opportunity to take advantage of a converging market in IT, mobility and consumer electronics. The transaction strengthens our existing IT business in the Netherlands and Denmark, significantly extends Brightstar Europe's mobility presence, and enables us to accelerate our diversification into consumer electronics in the Netherlands and Denmark with a leading, highly-respected distributor," said Nestor Cano, President, Tech Data Europe. "We look forward to Triade CEO Henk Makaske's leadership of our consumer electronics business, and welcome the addition of Triade's approximately 450 employees, including its experienced and dedicated management team to our organization."
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 October 1, 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 Corporation. The company is headquartered in the United Kingdom and has access to sales offices in 16 countries and nine logistics centers 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 specialized 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 main 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 5,000 sales outlets daily.