Tech Data to buy technology products distribution companies of SDG for $350 mn

Tech Data Corp, one of the world's largest wholesale distributors of technology products, today said that it would buy several distribution companies of Specialist Distribution Group (SDG) from UK-based IT services provider Specialist Computer Holdings (SCH), for about $350 million.

Birmingham-based SDG is a leading value-added distributor of enterprise-focused IT products in the UK, France and the Netherlands and markets a number of brands throughout the EMEA region.

Under the deal, Florida-based Tech Data will acquire SDG, IQ Sys and ISI Distribution in the UK, ETC and Best'Ware in France; and ETC in the Netherlands.

Tech Data said that the acquisition of these companies will strengthen its enterprise business, Azlan, as well as its broadline offerings in Europe, expanding its vendor and customer portfolios, and leveraging its pan-European infrastructure.

For their fiscal year ended 31 March 2012, the companies to be acquired generated third-party sales of approximately €1.4 billion ($1.75 billion), across a broad portfolio of data centre software and broadline products from industry leading suppliers.

The deal also includes a five-year supplier agreement with Specialist Computer, which Tech Data estimates will add incremental annual sales of about $500 million.