Feeds

Tech Data buys Azlan

Shares soar

  • alert
  • submit to reddit

Tech Data is to buy Azlan, Europe's biggest networking equipment distie, for $335m (approx. £142.4m) cash. This represents a premium of nearly 40 per cent more than the closing price of Azlan shares yesterday.

This morning, Azlan shares are skyrocketing, jumping 35p to, yest 125p per share - exactly the same price as Tech Data is offering.

Tech Data is the world's second biggest IT distie, after Ingram Micro, but it is number one in Europe. Azlan brings to the group much bigger market share in the key networking franchises, and a big expansion in technical training. Azlan is Europe's biggest supplier of manufacturer certification courses.

Azlan has managed to do rather better than its rivals, and has done astonishingly well considering, how torched the market is for networking equipment and technical training courses. But it cannot withstand the tide for ever. And while it may be big in Europe, it cannot command the vendor mindshare of global disties. With manufacturers constantly looking to reduce distie rosters, there is always the risk that Azlan, even Azlan, could fall off the A-list.

So selling out now looks like a very sensible option. Is it a good price? There is not exactly a seller's market for low-margin, high risk IT disties. So getting quarter times annual turnover (for the six months to September 30, 2002 Azlan produced sales of £298.6. million) and maybe 12x pre-tax annual profits (£6.2m before Bad Stuff for the same period) represents a good achievement for the Azlan board. ®

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.