Tech Data Pursues $100 Million In Cost Savings Post ATS Deal


Tech Data, which recently acquired Avnet Technology Solutions for $2.6 billion, expects the deal to deliver considerable cost savings over the next two years. Moreover, CEO Bob Dutkowsky and CFO Chuck Dannewitz sound confident that the distributor can keep Tech Data focused on execution even as the company digests and integrates ATS into the overall business.

Tech Data & Avnet: What’s Next?

While no M&A deal is easy, market pundits see potential opportunities ahead for both Tech Data and Avnet.

For instance, Tech Data gains geographic reach and data center product diversity, noted The 2112 Group:

“In picking up Avnet’s distribution business, it expanded its vendor relationships, product portfolio, and market reach – particularly in Asia. The deal gives Tech Data substantial resources and new relationships with which to execute on legacy and emerging technology strategies.”

On the flip side, Avnet — now free of its Technology Solutions business — can likely accelerate its own Internet of Things (IoT) strategy in such areas as embedded and automated machine-to-machine (M2M) technologies, the research firm noted.”

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