GLP release:
Tech Data To Acquire Globelle - Agreement strengthens distributor's position in Canadian market -
MISSISSAUGA, ONTARIO--Tech Data Canada Inc., a wholly-owned
subsidiary of global technology distributor Tech Data Corporation
(NASDAQ:NMS.TECD), has agreed to make an offer to acquire Globelle
Corporation (TSE:GLP.TO), a leading mass storage and components
distributor in Canada, for approximately Cdn.$37 million (US$25
million). The offer will be made through a take-over bid for all
of the common shares of Globelle at a price of Cdn.$2.50 per share
in cash.
The take-over bid, which is subject to regulatory approvals and
customary terms and conditions (including the tender of at least
66 2/3 percent of the Globelle common shares on a fully diluted
basis), is expected to be mailed to Globelle shareholders within
the next few weeks and completed by the end of May 1999.
Globelle's Board of Directors has unanimously approved the offer
and recommends it be accepted by Globelle shareholders. First
Marathon Securities Limited has delivered an opinion to the
Globelle Board that the offer is fair from a financial point of
view to Globelle shareholders. Pursuant to the agreement with Tech
Data, Globelle has agreed not to solicit other offers and has
agreed to pay to Tech Data a break-up fee equal to approximately
Cdn.$1.12 million (US$750 thousand) if the transaction is not
completed in certain circumstances, including due to a competing
offer. Tech Data does not hold, directly or indirectly, any
common shares in Globelle.
"Globelle will double our size in Canada while further bolstering
Tech Data's solid position in North America," commented Anthony
Ibarguen, President and Chief Operating Officer of Tech Data.
"Our customers will benefit from even stronger service and
support, lower costs, as well as a broader selection of products
across all technology categories."
"Globelle, a strong performer in Canada, is a natural fit for us.
With their strengths in mass storage and greater local geographic
coverage, we can accelerate our momentum and further capitalize on
emerging market trends and opportunities," commented Rick Reid,
President of Tech Data Canada.
Globelle reported sales of Cdn.$528 million (US$352 million) and
net income of Cdn.$6 million (US$4 million) in its most recent
fiscal year, which ended May 31, 1998. For its most recently
reported six-month period, which ended November 30, 1998, Globelle
generated sales of Cdn.$265 million (US$177 million) and net
income of Cdn.$3.2 million (US$2.1 million). Established in 1985,
Globelle today serves approximately 6,500 customers across Canada.
Globelle has more than 250 employees and distributes 15,000
products from over 60 manufacturers.
Globelle is also a market leader in Israel through its subsidiary,
Globelle Israel. This acquisition positions Tech Data as the
first global distributor with a strong presence in this growing
high tech region.
Executive management at Globelle expressed enthusiasm about the
opportunity to become part of an international leader and further
enhance overall customer service. "I am excited to be bringing
Globelle into the Tech Data organization, joining a company that
is clearly a global leader in the distribution business," said Ron
Austin, President and Chief Executive Officer of Globelle. "In the
Canadian market we view this as a merger of equals. We very much
complement each other's specialties and areas of strength, in
terms of product mix, geographic coverage and value added
services."
About Globelle
Globelle is a distributor of micro-computer products including
notebooks, servers, desk-top computers, disk drives, monitors,
terminals, printers, communication products, local area networks
and software products. The Company is headquartered in
Mississauga, Ontario and has operations in Canada and Israel.
About Tech Data Canada
Tech Data Canada is a leading technology products distributor
offering a comprehensive selection of software, networking and
communications solutions, mass storage, peripherals, and systems
to over 8,200 VARs and resellers across Canada. Operating from
two distribution centres, Tech Data Canada's services include
reseller training, advanced technical support, configuration and
assembly, electronic commerce and other unique programs. Tech Data
Canada is a wholly-owned subsidiary of Tech Data, a Fortune 500
company headquartered in Clearwater, Florida, with worldwide sales
of US$11.5 billion for its most recent fiscal year ended January
31, 1999. Tech Data's award-winning Web site is located at
techdata.com.
Regards, t. |
