Tech Data abandons Middle East
Expects up to $7m loss
Tech Data, the world's second biggest technology distributor, is withdrawing from the Middle East with Aptec stepping in to fill the hole left in the region.
In a filing made to the Securities and Exchange Commission Tech Data said that it expects to see a loss of up to $7m for the first half of fiscal 2008 because of the retreat.
The firm cited "increasingly difficult" regional market conditions for the decision to withdraw.
It posted a net loss of $142m on sales of $9.88bn for its financial year ended 31 January 2007.
On 21 March Tech Data confirmed it will hand over up to 14 franchises and distribution agreements to the newly formed Tech Data Middle East, a wholly-owned subsidiary of Aptec Holdings.
Dr A Ali Baghdadi, chairman and CEO of Aptec, said: "We can see tremendous opportunities for growing this business and broadening Aptec's footprint across the Middle East and beyond." ®