Tech Data gobbles Brightstar's piece of their Euro biz pie
Coughs $165.5m for equity in Brightstar Europe
Distribution behemoth Tech Data Corp has gulped down Brightstar's 50 per cent stake in the firms' European joint venture for around $165.6m (£106.4m) in cash.
The two wholesalers set up Brightstar Europe in 2007 to share the risks and rewards of tapping up the burgeoning mobility and wireless device space in the region.
Bob Dutkowsky, CEO at Tech Data, said the once "greenfield operation" had turned over $1.8bn in the last fiscal year.
He said the mega-distie was "grateful" to Brightstart for its partnerships, but it was time to say sayonara in the interests of long-term shareholder value.
"We anticipate working with Brightstar on specific European opportunities in the future and remain committed to our TD Mobility joint venture in the US," said Dutkovsky.
A spate of distie acquisition activity emerged in the past few weeks with Ingram Micro confirming its intention to acquire Brightpoint, and Avnet TS hoovering up the remaining operation of Magirus years after it shelled out for the IBM and HP units.
Tech Data said it will cough approximately $165.6m in cash for Brightstar's equity in the venture and settle any outstanding advanced by Brightstar to the joint operation.
The deal is expected to be completed in Tech Data's fiscal third quarter. ®