Tech Data Corp. will buy Avnet's Technology Solutions unit, which preconfigures datacenter gear and offers other services, in a deal valued at $2.6 billion in cash and stock.
Under the terms of the deal, Tech Data will pay Avnet $2.4 billion in cash and 2.8 million common shares valued at $200 million.
The deal between two of the tech industry's largest distributors allows both firms to focus. Avnet said it will focus on supply chain services as well as design. The company also said it is looking to expand into new markets and focus on embedded technology, Internet of Things, and digital platforms.
Tech Data will take Avnet's business and focus on its core distribution tools.
Avnet Technology Solutions serves customers and suppliers in 80 countries and focuses on IT primarily to distribute goods to resellers. Avnet's IT group works with Cisco, EMC, HP, Oracle, and a host of other tech giants.
Here's Avnet's IT unit in a graphic:
Tech Data and Avnet said they will partner on Internet of Things capabilities going forward.