The Tech Data-Avnet deal is worth $2.6 billion, consisting of $2.4 billion in cash and 2.785 million shares of Tech Data stock. Under terms of the agreement, Tech Data will pay $2.4 billion in cash and 2.785 million of its shares. The Company serves as a link in the technology supply chain by bringing products from the technology vendors to market, as well as providing its customers with logistics capabilities and services.
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With Technology Solutions, Tech Data will establish an immediate presence in the Asia-Pacific region, which will be a new market for US-headquartered organisation. It would also enable the two to attain required scale for their respective core businesses, making way to achieve greater profitability and allowing them to provide more to their shareholders. Reid quips that when asked about the geographic impact of the then-potential deal by the Tech Data executive team at headquarters, he noted that he could hit Avnet’s offices from his office with his pitching wedge.
“By investing in these high growth areas we can expand the breadth of our portfolio and attract new customers worldwide who depend on us to deliver world-class solutions”, Amelio says. Glenmede Trust Co. NA now owns 26,495 shares of the company’s stock valued at $2,033,000 after buying an additional 3,475 shares during the last quarter.
Tech Data expects to gain about $100 million in annual cost savings within two years after closing, primarily from efficiencies related to technology platforms, as well as duplicative functions and corporate expenses. They work with value-added resellers to make it easier and more affordable to enter and excel in high-growth technology and vertical markets locally and around the world. The average numbers of shares are traded in a security per day, during the recent 3-month period.
He added: “We believe the strategic and financial benefits resulting from this transformative combination are compelling for both our company and our stakeholders”.
Along with positive sentiments from the B2B technology distributor, CEO of Tech Data also exhibited similar signs.
United States of America based company, Tech Data Corp.’s (TECD)’s latest closing price distance was at 18.33% from the average-price of 200 days while it maintained a distance from the 50 Day Moving Average at 11.17% and 15.03% compared with the 20 Day Moving Average. Company shares were Upgraded by Stifel on Sep 20, 2016 to ” Buy”, Firm has raised the Price Target to $ 96 from a previous price target of $75.Tech Data Corp was Upgraded by BofA/Merrill to ” Neutral” on Aug 30, 2016. The deal is expected to close in the first half of 2017.
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Currently, Avnet carries a Zacks Rank #3 (Hold) while Tech Data has a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
