Tech Data Pays $165 Million to Control European Venture
Tech Data, based in Clearwater, Fla., said July 11 that it also would repay all loans Brightstar advanced to the venture, as well as a one-time charge of about $92 million.
Tech Data and Brightstar created the European joint venture in 2007 to capitalize on the continent’s growing mobile and wireless communication market.
According to its latest annual report filed at the Securities and Exchange Commission, Tech Data makes money by offering logistics services to technology companies and by buying and reselling their electronics products. It derives 24% of its revenue from Hewlett-Packard Co., SEC filings show. Brightstar, Miami, offers assembly, distribution and logistics to the same market.
“Our European mobility business is a key element in our strategy of diversifying into higher-growth, higher-return specialty areas,” Tech Data CEO Robert Dutkowsky said in a statement. “What began as a greenfield operation with Brightstar in 2007, is now a well-established, European mobility market leader with sales of approximately $1.8 billion in our last fiscal year,” he said.
The precise amount of the charge won’t be determined until the purchase is completed during Tech Data’s 2013 fiscal third quarter ending Oct. 30, the company said.
