Tech Data completes acquisition of majority interest in Computer 2000 AG
Acquisition creates global distributor of technology products with combined annual revenues exceeding $12 billion
July 1, 1998
CLEARWATER, FLA. - Tech Data Corporation today announced it has completed the acquisition of approximately 83% of the outstanding voting common stock of Computer 2000 AG, Europe's leading technology products distributor, with more than 40 subsidiaries in over 30 countries worldwide. Tech Data acquired approximately 80% of the outstanding voting common stock of Computer 2000 from its parent company, KlÃ¶ckner & Co. AG, based in Duisburg, Germany. KlÃ¶ckner & Co. is a subsidiary of Munich-based conglomerate VIAG AG. Tech Data issued $300 million of 5% convertible subordinated notes, due 2003, and 2.2 million shares of Tech Data common stock to complete the acquisition. In a cash transaction, Tech Data also acquired an additional stake of approximately 3% of Computer 2000's shares from an institutional investor.
The acquisition is a dramatic development in the company's global distribution strategy. Significant economies of scale are expected as Tech Data and its subsidiaries take products and services to new markets around the world.
"As technology manufacturers and enterprise integrators continue to develop international opportunities, it is critical that the distribution arm of technology is positioned to provide products and services to support them on a global basis," said Steven A. Raymund, Tech Data's chairman and chief executive officer. "Acquiring a majority interest in Computer 2000 clearly establishes Tech Data as a leader in international technology distribution."
In its fiscal year ended September 30, 1997, Computer 2000 generated sales of DM 8.2 billion ($4.9 billion) and operating profits of DM 110.0 million ($65.9 million). The company serves more than 75,000 resellers in Europe and other parts of the world, with operations in Argentina, Austria, Belgium, Bulgaria, Chile, Czech Republic, Denmark, Ireland, Estonia, Finland, France, Germany, Great Britain, Hungary, Iceland, Italy, Latvia, Lithuania, Netherlands, Norway, Peru, Poland, Portugal, Russia, Slovakia, Spain, Sweden, Switzerland, United Arab Emirates and Uruguay.
Tech Data Corporation, founded in 1974, is a leading full-line distributor of technology products worldwide. With its acquisition of a majority interest in Computer 2000, the company and its subsidiaries operate in over 30 countries, serving more than 100,000 resellers in the United States, Canada, the Caribbean, Latin America, Europe and the Middle East. The Clearwater, Fla.-based Fortune 500 company generated sales of $7.1 billion in its most recent fiscal year, which ended Jan. 31, 1998. In addition to distributing more than 75,000 products from the world's leading manufacturers and publishers, Tech Data provides extensive pre- and post-sale training, service and support. The company also offers high-quality integration and assembly services and a full range of electronic commerce solutions. Tech Data's Web site can be found at www.techdata.com.