The thread is dead, but the stock is ALIVE!
Up 10% this morning on news of buying Computer 2000.
====================
Tech Data To Acquire Computer 2000
Agreement Creates Global Distributor Of Technology Products With Combined Annual Revenues
Exceeding $12 Billion
CLEARWATER, Fla., April 14 /PRNewswire/ -- Tech Data Corporation (Nasdaq: TECD - news) has entered an agreement
to acquire a majority interest in Computer 2000 AG -- Europe's leading technology products distributor and the industry's third
largest with over 40 subsidiaries in more than 30 countries. The agreement provides for the acquisition of approximately 80%
of the outstanding voting common stock of Computer 2000 held by its parent company, Duisburg-based Klockner & Co. AG.
Klockner & Co. is a subsidiary of Munich- based conglomerate VIAG AG. Consideration issued by Tech Data Corporation
will be $300 million of convertible subordinated notes and 2.2 million shares of Tech Data common stock. The transaction,
which is subject to regulatory approvals, board approval and other terms and conditions, is expected to be completed by June
30, 1998.
Tech Data's global expansion strategy takes a major step forward with the acquisition of Computer 2000, which generated
sales of DM 8.2 billion ($4.9 billion) and operating profits of DM 61.4 million ($36.7 million) in its most recent fiscal year
which ended September 30, 1997. Established in 1983, Computer 2000 today serves approximately 75,000 customers
primarily in Europe, the Middle East, Africa and Latin America. The company employs more than 3,000 associates worldwide
and distributes 25,000 products from over 400 manufacturers and publishers.
''This agreement is a major milestone in our 24-year history of continuous growth and record-breaking financial performance,''
commented Steven A. Raymund, Tech Data's chairman and chief executive officer. ''The acquisition of Computer 2000 gives
Tech Data a dramatic advantage in the global marketplace. It greatly strengthens our presence in the current international
markets we serve while positioning us as a leader in many additional countries.''
Computer 2000 maintains operations in Argentina, Austria, Belgium, Bulgaria, Chile, Czech Republic, Denmark, Ireland,
Estonia, Finland, France, Germany, Great Britain, Hungary, Iceland, Italy, Latvia, Lithuania, Netherlands, Norway, Peru,
Poland, Portugal, Russia, Slovakia, Spain, Sweden, Switzerland, United Arab Emirates and Uruguay.
Certain matters discussed in this news release are forward-looking statements that involve a number of risks and uncertainties.
Factors that could cause actual results to differ materially include the following: business conditions and growth in the personal
computer industry and general economy; competitive factors; inventory risks due to shifts in market demand; changes in
product mix; labor strikes; and the risk factors listed from time to time in the company's reports filed with the Securities and
Exchange Commission.
Tech Data Corporation is a leading full-line distributor of personal computer products, serving more than 70,000 resellers
throughout the United States, Canada, Latin America, Germany, France, Switzerland and Austria. The Fortune 500 company
generated sales of $7.1 billion in its most recent fiscal year, which ended January 31, 1998. In addition to distributing more than
45,000 products from over 900 manufacturers and publishers, Tech Data provides extensive pre- and post-sale training,
service and support as well as high- quality configuration and assembly services and a full range of electronic commerce
solutions. The company's comprehensive Web site is located at techdata.com .
================================ |
