Tech Data Gets Big GE Capital Deal
CLEARWATER, Fla. (Reuters) - Tech Data Corp. (Nasdaq:TECD - news) said Thursday it would
become the information technology supplier for GE Capital IT Solutions, a unit of General Electric Co.,
in a deal that will be worth $2 billion a year for Tech Data.
For the year ended January 31, Tech Data had net sales of $11.53 billion.
Tech Data said in a statement that it would be the provider of information technology (IT) procurement,
configuration and assembly, and of logistics services, for GE Capital IT Solutions, which provides
businesses with information technology products and services.
''The three-year agreement will focus on the U.S. and is projected to generate approximately $2 billion
in annual incremental revenue for Tech Data upon full implementation,'' the statement said.
''This outsourcing agreement illustrates the profound role Tech Data has in the future of the IT industry,''
said Tech Data Chairman and Chief Executive Steven Raymund.
As part of the agreement, Tech Data will assume control of GE Capital IT Solutions' 200,000-square-foot
facility in Frederick, Md., effective in August.
The operations include a configuration and assembly center as well as inventory stocking and fulfillment
services. All of the facility's employees will become Tech Data employees.
With the outsourcing agreement, GE Capital IT Solutions will no longer need to stock, configure or
assemble technology products before delivery.
The agreement coincides with another recent major industry announcement in which Compaq Computer
Corp. (NYSE:CPQ - news) is consolidating its number of distribution partners in North America from 39
to four -- including Tech Data.
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