CEO says full ownership reflects the company’s “commitment to and confidence in the European mobility distribution market”
Tech Data has today completed the acquisition of Brightstar Europe, ending the five year joint venture agreement.
The IT distributor confirmed this evening it has paid $165.6 million (£106m) in cash for Brightstar’s equity in the joint venture and the repayment of all loans advanced by Brightstar to the joint venture.
As a result of this transaction, Tech Data will record an adjustment that decreases additional paid-in capital within shareholders’ equity by $86 million to $90 million, representing the purchase price premium paid to Brightstar for its share of the joint venture and costs incurred associated with the transaction.
Tech Data Corporation CEO Robert M. Dutkowsky said: “Acquiring full ownership of the joint venture reflects our commitment to and confidence in the European mobility distribution market.
“Mobility is one of Tech Data’s fastest growing specialty businesses and an important element of our diversification strategy. We thank Brightstar for its partnership in helping to establish and expand the joint venture. Since the business already operates within our European infrastructure, Tech Data’s shareholders will now benefit from owning 100 percent of this highly successful specialty division.”