Tech Data approved for Scribona takeover

Source: Technology Exec

Date :29/04/2008 03:56:43

Information technology distributor Tech Data has been given clearance by European regulators to buy Nordic-based Scribona for a premium in excess of $20 million.

Negotiations initially took place at the beginning of March, with both parties agreeing on a figure equating to total net asset value plus a premium between €13.5 million and €16.5 million ($21.1 million to $25.8 million).

However, the deal was delayed while the European Commission competition regulators assessed the situation. Although Scribona – a provider of personal computers, peripherals, servers and other products across Scandinavia – overlaps with some of Tech Data’s information technology distribution subsidiaries in the area, the regulatory committee ruled in favor of the US company.

“Competitors in these countries […] would be able to constrain the behavior of the combined entity,” said the Commission in a statement.

“In addition […] wholesale distributors in Sweden, Finland and Norway face competitive pressure from manufacturers of IT products and software producers who sell their products directly to resellers and retailers, thus bypassing the wholesalers.”

‘Compelling fit’

Both Scribona and Tech Data have reacted positively to the news, with Tech Data CEO Robert M. Dutkowsky saying: “Through this transaction, Tech Data will gain a talented team of highly experienced distribution that will help strengthen our operations and drive stronger relationships with our key vendor partners and customers.

“This combination will provide Tech Data’s new and existing customers access to an extended portfolio of vendor partners including an expanded suite of value-added hardware and software business solutions.”

Scribona, whose shares have increased over one percent in early trading, added: “The combination of the Tech Data and Scribona businesses is a compelling fit and will create a strong IT industry player with the market reach to develop further.”

April 29, 2008