A Tectonic Shift In The IT Distribution Landscape
The closing of Tech Data's $2.6 billion acquisition of Avnet Technology Solutions unleashes a $35 billion IT distributor powerhouse that has operations around the globe and derives nearly half its revenue from the data center. That's known.
What's less clear, though, is how Tech Data will go about turning around Avnet TS' performance, which has sustained continued sales and operating margin drops.
Uncertain as well is how Tech Data's Internet of Things capabilities will be affected and how Tech Data's Advanced Infrastructure Solutions business will come together with Avnet's specialty business in North America.
Read on to examine how the closing of this deal will reshape Tech Data, Avnet TS, and the IT distributor ecosystem at large.