No explanation given for distributor’s decision to back out of deal
InFlow Technologies is backing out of the agreement announced in December to be bought by Tech Data.
The Lowdown: InFlow, a value-added distributor of a wide range of technologies and with particular strength in Asia, did not disclose the reason for withdrawing from the deal.
The Details: According to a brief announcement by Tech Data over the weekend, InFlow – based in Bangalore, India, and with offices in Bangladesh, Sri Lanka, and Singapore – paid a breakup free, part of the agreement announced Dec. 16.
Tech Data, a major IT distributor with more than 125,000 customers and 14,000 employees, was looking to InFlow to give it a larger presence in the Asia-Pacific region and more capabilities with such technologies as cybersecurity, networking – including 5G and Wi-Fi 6 – unified communications and collaboration (UCC), and server and storage management.
The Clearwater, Florida-based company already has offices in such Asian markets as Australia, China, Thailand, Indonesia, and Vietnam.
The Impact: The deal with InFlow came even as Tech Data itself is in the process of being bought by private equity firm Apollo Global Management in a $6 billion deal that will take the world’s second-largest distributor private. That deal is expected to close in the middle of this year.
The Buzz: “We respect Inflow’s decision to go in a different direction,” said Jaideep Malhotra, president of Tech Data’s Asia-Pacific business. “Tech Data is committed to our strategy of delivering higher value by strengthening our end-to-end portfolio and optimizing our global footprint, and we continue to explore opportunities to grow our business in alignment with this strategy.”