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TECH DATA COMPLETES ACQUISITION OF TECHNOLOGY SOLUTIONS BUSINESS FROM AVNET

A Message from our CEO

Robert M. Dutkowsky - Chief Executive Officer

Bob Dutkowsky

Chief Executive Officer

I am pleased to announce that Tech Data has completed the acquisition of Avnet’s Technology Solutions business, creating a premier global IT distributor with unmatched capabilities and the most diverse end-to-end solutions from the data center to the living room.

I am proud to extend a warm welcome to our colleagues at Technology Solutions and look forward to the opportunities ahead for our partners and our employees. But I’m not the only one excited about this winning combination and the future of Tech Data. Take a few minutes to watch the video below to hear from some of our 14,000 team members around the world:

A Winning Combination Video

Thank you for your continued trust in our company. We will provide timely communication on additional updates on the combined company as they are available. Welcome to the new Tech Data!

HELPFUL FAQs

What was announced?

Tech Data announced that it has completed the acquisition of Avnet’s Technology Solutions business. This winning combination provides increased capabilities and expanded reach across technologies and geographies to establish Tech Data as a premier global IT distributor with operations in 40 countries and the most diverse end-to-end portfolio of solutions and services… from the data center to the living room. As a result of the broader offering and capabilities created through this transaction, Tech Data will be even better positioned to capture opportunities in high-growth, next generation technologies, deliver differentiated value to our customers and vendors, support career development for our employees, and generate strong returns for our shareholders.

Who is Technology Solutions?

Technology Solutions delivers technology services, software, hardware and solutions across the data center that are complementary to Tech Data’s diversified portfolio of offerings and strategic areas targeted for growth. Technology Solutions partners with more than 40 of the world’s top IT vendors to address the IT business needs of 20,000 customers in more than 80 countries.

What are the terms of the transaction?

Under the terms of the agreement, Avnet received at closing approximately $2.4 billion in cash and 2.785 million shares of Tech Data common stock, representing an approximate 7 percent ownership position in Tech Data.

What are the plans for integrating Technology Solutions business into Tech Data?

An integration management office (IMO), comprising Tech Data and Technology Solutions employees, has been working diligently over the past several months. This group has been responsible for planning integration activities. Going forward, Els Demeester, corporate vice president, Integration, will lead our global integration efforts.

Now that the transaction is closed, we will develop more detailed integration plans to optimize our combined business operations. In the Americas, we plan to integrate Tech Data’s Americas data center business (AIS) into Technology Solutions’ operations. We believe this will minimize disruption and ensure a smooth transition for customers and vendors. In Europe, we plan to integrate Technology Solutions’ operations into Tech Data’s data center business (Azlan), bringing together the key strengths of both into one united data center business.

Now that the transaction has closed and Tech Data and Avnet Technology Solutions are officially one company, what happens next?

For the time being Tech Data and Technology Solutions will continue to operate as separate entities, so it is business as usual. However, now that the transaction has closed, integration planning activities will accelerate. Certain key decisions such as leadership appointments have been announced and are effective immediately. Other integration steps such as system and process changes will be phased in over time. Please be assured that we are committed to integrate with minimal or no impact to your business with us and will continue to provide superior customer service and support. We will provide timely communication as needed if/when changes do occur.

What does this transaction mean for Tech Data customers and for Technology Solutions customers?

This is a transformative transaction for Tech Data that we believe will bring significant opportunities to our customers. Technology Solutions is an established leader in value-added distribution, delivering superior technology services, software, hardware and solutions across the data center, which is complementary to Tech Data’s diversified portfolio of offerings and strategic areas targeted for growth. Together with Technology Solutions, Tech Data will be the most diverse end-to-end global IT distributor with operations in more than 40 countries.

The lines that define technology are blurring. Innovation, converging technologies and new consumption models are reshaping our industry. Customers don’t think in terms of broadline, data center, mobility or consumer electronics - they think in terms of business solutions. We believe that in order to win in this solutions-oriented environment, it’s necessary to be an end-to-end distributor, one that can offer customers a wide array of products, solutions, services and skillsets.

As a result of the broader offering and capabilities created through this transaction, Tech Data will be even better positioned to help our customers capture opportunities in high-growth, next-generation and emerging technologies, giving them access to a broad portfolio of solutions that save them time, reduce complexity, and help them grow their businesses.

Who should I work with at Tech Data and Technology Solutions now that this transaction has been completed?

For now, your Tech Data and Avnet Technology Solutions contacts will remain the same; we look forward to continuing to work with you as we have in the past. We will provide timely communication on any updates as they are available.

What does this transaction mean for Tech Data and Technology Solutions vendors/suppliers? Will there be any changes in vendor/supplier contracts as a result of this transaction?

This transaction helps ensure that Tech Data is well-positioned to continue meeting the needs of both existing and new customers and vendors/(suppliers) in an industry that is seeing significant change as a result of technology innovation and convergence.

Tech Data and Technology Solutions have highly complementary offerings. Technology Solutions is an established leader in value-added distribution, delivering superior technology services, software, hardware and solutions across the data center, which is complementary to Tech Data’s diversified portfolio of offerings and strategic areas targeted for growth. As of today, Tech Data is now a premier global IT distributor with operations in 40 countries and the most diverse end-to-end solutions from the data center to the living room.

As a result of the broader offering and capabilities created through this transaction, Tech Data is even better positioned to capture opportunities in high-growth, next-generation technologies and deliver differentiated value to both existing and new vendors and customers.

There will be no changes to vendor contracts including pricing, MDF, rebates or any other current terms as a result of the transaction at this time.

Who should I work with at Tech Data and Technology Solutions now that this transaction has been completed?

For now, your Tech Data and Technology Solutions contacts will remain the same; we look forward to continuing to work with you as we have in the past. We will provide timely communication on any updates as they are available.

I have a vendor (supplier) contact in both Tech Data and Technology Solutions so who do I speak to or work with now that the transaction is complete?

For now, your contacts will remain the same and you should work with them as you have in the past.