Technology products distributor Tech Data Corp hopes to invigorate its European presence through acquisition deals worth $350 million.
59 percent of the company's sales are from Europe, Reuters reports. Tech Data says that the latest round of acquisitions, based in the UK, France and the Netherlands, specialize in data center and enterprise products -- a market that the firm wishes to expand.
Several distribution companies owned by UK-based IT services provider Specialist Computer Holdings are being purchased by Tech Data. The distribution arm of Specialist Computer Holdings, Specialist Distribution Group, is part of the agreement -- which is worth an estimated €277m ($349 million).
Once the deal is complete, SCH plans to concentrate on the higher-end of its service division, Specialist Computer Centers.
In addition, a five-year supplier agreement with Specialist Computer has been agreed. Tech Data predicts that this part of the purchase will be worth incremental sales of $500 million.
Robert Dutkowsky, CEO Tech Data Corporation, said:
"This transaction demonstrates Tech Data's strong commitment to our diversification strategy and further expands our enterprise offerings in Europe. It adds both breadth and depth to our product and customer portfolios, and creates a comprehensive enterprise solution stack in networking and communications, server and storage and Enterprise Software across a broader pan-European footprint."
The deal is expected to be finalized by the fourth quarter.