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EC watchdogs clear Tech Data gobble of SDG
$350m deal gets green light, Tech Data raises funds, should all be tickety boo
Tech Data's acquisition of Specialist Distribution Group (SDG) has been given the green light from competition regulators in the European Commission.
As is customary with takeovers of large firms, the bureaucrats on the mainland wanted to consider the implications of the $350m (£217.4m) deal.
"The Commission concluded that the transaction would not raise competition concerns, because the parties have moderate market shares and will continue to face a number of competitors in all the markets concerned," said the EC in a canned statement.
the regulators looked at the potential impact on the servers and storage sectors in the European Economic Areas, specifically the UK, France and the Netherlands.
Last month Tech Data completed the public offering of $350m senior notes.
This was to fund the buy of SDG – with any remaining proceeds to be used to for "general corporate purposes".
So in clearing these hurdles the deal should close fairly sharpish, handing new vendor lines to Tech Data - including those of IBM, VMware and Citrix - and adding a bunch of new staffers. ®