The European Commission (EC) announced today it had greenlighted the acquisition of UK-based Specialist Computer Holdings Plc’s (SCH) IT products distribution business by the European unit of US sector company Tech Data Corp (NASDAQ:TECD).
As unveiled in early September, Tech Data agreed to buy the shares of several distribution firms owned by SCH for a total of EUR277m (USD360.2m), including a premium of about EUR170m.
Today, the EC said it had determined that the purchase would not raise competition concerns as the involved companies have moderate market shares and will still face several rivals.
The transaction involves the acquisition of UK-based Specialist Distribution Group Ltd and its unit ISI Distribution Ltd, French-headquartered ETC Metrologie Sarl, Best’Ware France SA and ETC Africa SAS as well as of SDG BV and ETC BV in the Netherlands. The targeted firms generated third-party sales of around EUR1.4bn for their fiscal year to 31 March 2012.
The acquisition will bolster Tech Data’s enterprise business, known as Azlan, along with its broadline offerings in Europe. It will also expand the company’s vendor and customer portfolios and add over 600 employees. Tech Data had previously said it expects to close the transactions by the fourth quarter of fiscal 2013.