Overview

Tech Data Corporation was a United States-based technology distributor that connected hardware and software manufacturers with resellers, systems integrators, managed service providers, retailers, and other channel partners. Founded in Clearwater, Florida, in November 1974 by Edward C. Raymund, the company initially marketed data-processing supplies for mini and mainframe computers. During the 1980s it shifted from a reseller model to a full-line distributor of personal-computer products, a change led by Edward Raymund's son, Steven A. Raymund. The company expanded from a domestic distributor into a multinational channel-services business. Its activities included procurement, warehousing, logistics, financing support, technical enablement, training, and value-added distribution. Tech Data handled products and solutions from major technology suppliers, including Apple, Cisco, Dell, Fortinet, Hewlett Packard Enterprise, HP Inc., IBM, Lenovo, LG, Microsoft, Sony, Trend Micro, VMware, Google, TP-Link, and ViewSonic. Its portfolio covered personal computers, components, peripherals, networking equipment, data-center infrastructure, security products, cloud technologies, enterprise software, and related professional and educational services. Tech Data used acquisitions to build geographic reach and specialist capabilities in North America and Europe. Transactions and integrations involving companies such as ParityPlus, Softmart International, Computer 2000, Globelle Canada, Azlan Group, Actebis Switzerland, Scribona, Triade Holding, Specialist Distribution Group, and Signature Technology Group broadened its country coverage and added expertise in enterprise systems, networking, software, and training. ExitCertified, a training and certification business with operations in Canada and the United States, operated as a wholly owned subsidiary. The company became a major publicly traded distributor after its 1986 initial public offering on NASDAQ under the symbol TECD. It reported net sales of $37.7 billion for the fiscal year ended January 31, 2017, and was ranked 83rd in the 2018 Fortune 500. A major strategic expansion occurred in 2017, when Tech Data completed its acquisition of Avnet's Technology Solutions operating group in a transaction valued at approximately $2.6 billion. The deal materially strengthened its data-center, enterprise, and value-added distribution activities. Apollo Global Management agreed to acquire Tech Data in 2019, and the transaction closed on June 30, 2020. In March 2021, Synnex announced an agreement to acquire a 55 percent interest in Tech Data for approximately $7.2 billion, including assumed debt. The companies completed their merger on September 1, 2021, creating TD Synnex. Tech Data therefore ceased to operate as an independent publicly traded company, although its channel relationships, regional operations, and distribution capabilities became part of the combined TD Synnex business.

History

Tech Data was established in Clearwater, Florida, in November 1974 by Edward C. Raymund. Its original business marketed data-processing supplies for mini and mainframe computers, serving a specialized computing market before the broad adoption of personal computers. The company initially operated closer to a reseller and supplies intermediary than to the large-scale channel distributor it later became. A strategic transition began in 1983, when Tech Data moved toward full-line national distribution of personal-computer products. Steven A. Raymund, Edward Raymund's son, led this change and helped reposition the company around manufacturer relationships, inventory management, logistics, and reseller support. In 1986, Steven succeeded his father as chief executive officer, and Tech Data completed an initial public offering on NASDAQ under the ticker TECD. Over the following decades, Tech Data expanded across North America and Europe. The company used acquisitions to add local market access and specialist distribution capabilities, purchasing or integrating businesses including Canada's ParityPlus and Globelle Canada, France's Softmart International, Germany's Computer 2000 AG, the United Kingdom's Azlan Group, Actebis AG's Swiss operations, Nordic distributor Scribona, the Netherlands' Triade Holding, Specialist Distribution Group, and Signature Technology Group. These transactions helped broaden the company beyond conventional personal-computer distribution into networking, enterprise computing, software, data-center infrastructure, and professional services. Tech Data's operating model combined physical distribution with value-added services. It sourced products from global manufacturers, managed inventory and fulfillment, and supported channel partners with technical information, training, financing-related programs, marketing resources, and solution design. The company served a wide range of technology vendors and channel organizations, allowing manufacturers to reach fragmented reseller and integrator markets without building equivalent logistics networks in every country. The company encountered a significant accounting issue in 2013, when an error associated with a former financial comptroller was reported to have reduced profit by nearly €27 million. In 2015, Tech Data reported record second-quarter results, including 22.4 percent growth in net income and 8 percent sales growth. The data-center business was identified as an important contributor to that performance. For the fiscal year ended January 31, 2017, Tech Data reported $37.7 billion in net sales and was subsequently listed at number 83 in the 2018 Fortune 500. In September 2016, Tech Data agreed to acquire Avnet's Technology Solutions operating group for approximately $2.6 billion in cash and stock. The transaction closed in February 2017. Avnet received approximately $2.4 billion in cash and 2.785 million Tech Data shares, representing about 7 percent of Tech Data at closing. The acquisition strengthened Tech Data's enterprise and data-center position and added substantial value-added distribution capabilities. ExitCertified, a training and certification business with offices in Ottawa and Sacramento, operated as a wholly owned Tech Data subsidiary. This activity illustrated the company's effort to provide services beyond product movement, particularly technical education and professional enablement for technology-channel participants. In November 2019, Tech Data announced an agreement to be acquired by Apollo Global Management for approximately $6 billion. The transaction closed on June 30, 2020, taking the company private and ending its period as a NASDAQ-listed corporation. On March 22, 2021, Synnex announced an agreement to acquire 55 percent of Tech Data for approximately $7.2 billion including debt. The merger of Tech Data and Synnex was completed on September 1, 2021. The combined company was named TD Synnex and reported projected or combined annual revenue of approximately $59.8 billion, creating one of the world's largest IT distributors. Tech Data consequently became a predecessor business and operating platform within TD Synnex rather than an independent company.

2021
Merger with Synnex
[1]Tech Dataen.wikipedia.org
Tech Data and Synnex completed their merger on September 1, creating TD Synnex.
2020
Tech Data becomes privately held
[1]Tech Dataen.wikipedia.org
Apollo completed its acquisition of Tech Data on June 30, ending the company's public listing.
2019
Apollo acquisition announced
[1]Tech Dataen.wikipedia.org
Apollo Global Management agreed to acquire Tech Data for approximately $6 billion.
2017
Avnet transaction closes
[1]Tech Dataen.wikipedia.org
Tech Data completed the acquisition of Avnet Technology Solutions in February.
2016
Agreement to acquire Avnet Technology Solutions
[1]Tech Dataen.wikipedia.org
Tech Data announced a stock-and-cash acquisition of Avnet's Technology Solutions operating group.
2015
Record second-quarter performance
[1]Tech Dataen.wikipedia.org
Tech Data reported record quarterly results, supported in part by growth in its data-center business.
2013
Accounting error disclosed
[1]Tech Dataen.wikipedia.org
An accounting error connected with a former financial comptroller was reported to have reduced profit by nearly €27 million.
1986
Leadership succession and NASDAQ offering
[1]Tech Dataen.wikipedia.org
Steven A. Raymund became chief executive officer, and Tech Data announced its initial public offering on NASDAQ under ticker TECD.
1983
Shift to full-line personal-computer distribution
[1]Tech Dataen.wikipedia.org
The company began transitioning from reseller activities to national distribution of personal-computer products.
1974
Tech Data is founded
[1]Tech Dataen.wikipedia.org
Edward C. Raymund founded Tech Data in Clearwater, Florida, as a marketer of data-processing supplies for mini and mainframe computers.

Products and positioning

A global, channel-focused IT distributor and value-added services provider linking technology manufacturers with resellers, systems integrators, managed service providers, retailers, and other business partners.

Computing hardware distribution · 1983
Personal-computer products
Personal computers, notebooks, components, displays, peripherals, and related accessories formed an important part of Tech Data's traditional distribution portfolio. The company supplied these products to resellers, retailers, and other channel partners, combining manufacturer access with inventory, fulfillment, and channel-support services.
Enterprise technology distribution
Data-center and enterprise solutions
Tech Data distributed servers, storage, networking, virtualization, software, and related infrastructure for enterprise and data-center environments. Its value-added capabilities supported solution configuration, technical enablement, and the integration of multiple supplier products for systems integrators and business resellers.
Networking and security distribution
Networking and cybersecurity portfolio
The company represented networking, communications, endpoint-security, and cybersecurity manufacturers. This portfolio served resellers and integrators that needed access to vendor products alongside technical information, logistics, training, and other services required to deploy complete IT solutions.
IT training and certification
ExitCertified
ExitCertified was a wholly owned subsidiary focused on technical training and certification. With offices in Ottawa, Canada, and Sacramento, United States, it extended Tech Data's role from product distribution into professional education and skills development for technology customers and channel participants.

Controversies

2020
French regulator fines Apple over anti-competitive sales and distribution practices
France's national competition regulator fined Apple $1.23 billion over anti-competitive practices in its sales and distribution networks. According to the regulator, two wholesalers agreed not to compete with each other and prevented distributors from competing. Apple said it disagreed with the decision and planned to appeal.
Source 1 Source 2 Source 3 Source 4
2013
Accounting error involving former financial comptroller
Tech Data was reported to have lost nearly €27 million in profit because of an accounting error associated with a former financial comptroller.
Source

Brand decisions

2021
Merge with SynnexM&A
Background
Synnex sought to combine with Tech Data to create a larger global IT-distribution platform.
Action taken
Synnex agreed to acquire 55 percent of Tech Data, and the companies completed their merger on September 1, 2021.
Aftermath
The combined business became TD Synnex, and Tech Data ceased to exist as an independent company.
Transaction value. $7.2 billion including debt (Announced March 22, 2021; merger completed September 1, 2021)
Source
2019
Accept Apollo Global Management acquisitionM&A
Background
Tech Data agreed to a financial sponsor acquisition after operating as a publicly traded distributor.
Action taken
The company announced an agreement for Apollo Global Management to acquire it for approximately $6 billion.
Aftermath
Apollo completed the transaction on June 30, 2020, and Tech Data became privately held.
Acquisition value. $6 billion (Announced November 2019; completed June 30, 2020)
Source
2016
Acquire Avnet Technology SolutionsM&A
Background
Tech Data sought to increase its scale and strengthen its enterprise and value-added distribution operations.
Action taken
The company agreed to acquire Avnet's Technology Solutions operating group in a cash-and-stock transaction valued at approximately $2.6 billion.
Aftermath
The transaction closed in February 2017 and expanded Tech Data's data-center, enterprise, and specialist channel capabilities.
Transaction value. $2.6 billion (Announced September 2016; closed February 2017)
Source
1983
Move from reseller to national distributorStrategy
Background
The company operated in an early computing-supplies market and sought a broader, more scalable role in the growing personal-computer industry.
Action taken
Tech Data began transitioning to full-line national distribution of personal-computer products.
Aftermath
The change established the distribution-centered model that underpinned the company's later expansion into enterprise, networking, software, and data-center markets.
Source

Recent events

2021
Synnex agrees to acquire a majority interest in Tech Data[1]Tech Dataen.wikipedia.org
M&A
Synnex announced an agreement to acquire 55 percent of Tech Data in a transaction valued at approximately $7.2 billion including debt.
2021
Tech Data and Synnex complete merger to form TD Synnex[1]Tech Dataen.wikipedia.org
M&A
The merger was completed on September 1, 2021, creating TD Synnex and ending Tech Data's existence as an independent company.
2020
Apollo completes acquisition of Tech Data[1]Tech Dataen.wikipedia.org
M&A
Apollo Global Management completed its acquisition of Tech Data on June 30, 2020, taking the company private.
2019
Tech Data announces Apollo Global Management acquisition[1]Tech Dataen.wikipedia.org
M&A
Tech Data announced that Apollo Global Management would acquire the company in a transaction valued at approximately $6 billion.
2017
Tech Data completes Avnet Technology Solutions acquisition[1]Tech Dataen.wikipedia.org
M&A
The acquisition closed in February 2017, expanding Tech Data's enterprise, data-center, and value-added distribution capabilities.
2016
Tech Data announces acquisition of Avnet Technology Solutions[1]Tech Dataen.wikipedia.org
M&A
Tech Data announced an agreement to acquire Avnet's Technology Solutions operating group in a stock-and-cash transaction valued at approximately $2.6 billion.
2015
Tech Data reports record second-quarter results[1]Tech Dataen.wikipedia.org
Other
Tech Data reported record quarterly earnings, with net income increasing 22.4 percent and sales increasing 8 percent; the company attributed significant strength to its data-center business.