Tech Data is 100% committed to IT products distribution. One of the world's largest distributors of computer products, Tech Data provides thousands of different items to about 125,000 resellers in 100 countries. Its catalog of products includes computer components (disk drives, keyboards, and video cards), networking equipment (routers and bridges), peripherals (printers, modems, and monitors), systems (PCs and servers), and software. Tech Data also provides technical support, configuration, integration, financing, electronic data interchange (EDI), and other logistics and product fulfillment services. More than half of Tech Data's revenues are generated in Europe.
To further build its business in Europe, Tech Data in late 2012 acquired several distribution companies owned by UK-based Specialist Distribution Group (SDG) in the UK, France, and the Netherlands. Combined the acquired businesses generate sales of about €1.4 billion ($1.75 billion). Previously, Tech Data bought Triade Holding, a Netherlands-based distributor of consumer electronics and IT products, in 2010. The purchase strengthened Tech Data's IT business and accelerated its diversification into consumer electronics in the Netherlands, Denmark, and the Benelux region; it also supported operations across Europe by adding new specialty products, vendors, and customers. As part of the transaction, Tech Data's joint venture with Brightstar, Brightstar Europe (formed in 2007), acquired Triade subsidiary Mobile Communication Company (MCC), a mobility products distributor in Benelux. Total value of both deals was €83 million (about $123 million). (Later, Tech Data in 2012 bought its joint venture partner Brightstar's 50% ownership in Brightstar Europe for more than $165 million, as well as several distribution companies in the UK from the distribution arm of IT services company Specialist Computer Holdings.)
As Tech Data rebounded from the global recession, it saw its fiscal 2011 sales increase by around 10% from the prior year. Some foreign currencies had negative impacts against the US dollar, which dragged down the company's sales. Tech Data gained ground in the Americas with 2011 sales increasing by 10% and Europe increasing by some 11% (an increase of around 18% in euros). The increase was credited to acquisitions in Europe and the improving global economy.
As manufacturers have promoted more direct relationships with their customers, the need for middlemen in the industry has dwindled and many tech product distributors have gone under. Tech Data was spared this fate due to its size and scope, but it continually looks to cut costs in order to survive in a business characterized by thin margins. The company has also expanded its service offerings, which range from pre- and post-sale technical support to customized shipping documents and electronic commerce integration.
Tech Data distributes products from such vendors as Apple, Cisco Systems, IBM, Microsoft, Sony, and Hewlett-Packard (which accounts for some 27% of sales).
Janus Capital Management, a part of Janus Capital Group, owns around 14% of the company. – less