CLEARWATER, Fla. (AP) — Tech Data Corp. said Tuesday that it plans to acquire several distribution companies belonging to U.K. information technology company Specialist Distribution Group in a deal that will expand its presence in Europe.
The Clearwater, Fla.-based technology products distributor said it will pay €277 million ($350 million) for the businesses, which include data center, software and other technology product distributors.
Specialist Distribution Group is the distribution arm of Specialist Computer Holdings, a privately-held IT services company in the UK. Tech Data will acquire three businesses based in the U.K., two in France and one in the Netherlands as part of the deal. The companies generated revenue of about $1.75 billion in their most recent fiscal year.
As part of the deal, the companies agreed to a supplier arrangement that that Tech Data expects to increase its annual sales by about $500 million.
Tech Data's revenue in the fiscal year ended in January 2012 came to $26.49 billion.
The deal is still subject to European Union regulatory approval and is expected to be completed by the end of January.
Tech Data's shares fell $1.29, or 2.6 percent, to $47.96 in afternoon trading.