Tech Data — Merger or Acquisition (September 2016)
14 slides from Tech Data's merger presentation, Sep 19, 2016
Slide 1: Tech Data's Acquisition of Avnet Technology Solutions
1 Tech Data’s Acquisition of Avnet Technology Solutions techdata.com September 19, 2016 Creating a Premier Global IT Distributor: From the Data Center to the Living Room
Slide 2: Forward-Looking Statements Safe Harbor
2 Forward-Looking Statements Safe Harbor Certain statements in this communication may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, including statements regarding Tech Data’s plans, objectives, expectations and inte
Slide 3: Tech Data's Acquisition of Avnet Technology Solutions
3 Tech Data’s Acquisition of Avnet Technology Solutions Tech Data is acquiring Avnet’s Technology Solutions business for approximately $2.6 billion in a cash and stock transaction The combination of Tech Data and Technology Solutions creates a premier global IT distributor with the most diverse end-
Slide 4: Creates a Premier Global IT Distributor: From the Data Center to the Living Room
4 Creates a Premier Global IT Distributor: From the Data Center to the Living Room Significantly broadens value-added distribution business Increases ability to capitalize on key next generation technologies Expands go-to-market capabilities by adding complementary skills, vendor relationships and n
Slide 5: Technology Solutions At a Glance
5 Avnet Technology Solutions At a Glance (1) Avnet Technology Solutions estimated revenue for the fiscal year ended July 2, 2016 for the operations to be acquired. Servers, Storage, Software, Networking, Services Converged & Hyper-converged Security Analytics Cloud Technology Solutions $9 billion(1)
Slide 6: New Forces in IT Disrupting the Channel: Third Platform Technologies
6 New Forces in IT Disrupting the Channel: Third Platform Technologies Hardware Software Services Big Data Converged & Hyper-converged Infrastructure Information Security Mobility Cloud
Slide 7: Next Generation Technologies Driving IT Spending Growth
7 Next Generation Technologies Driving IT Spending Growth $20 $43 20162019$676 $703 20162019 Converged & Hyper-converged Infrastructure(2) ($B) 3rd Platform Solutions to Drive Virtually All New, Strategic Enterprise IT Investments Cloud Services(3) ($B) $223 $361 20162019 Data Analytics(6) ($B) $113
Slide 8: Combination Benefit: Significantly Broadens Value-Added Distribution Business
8 Combination Benefit: Significantly Broadens Value-Added Distribution Business 45% 48% 7% 29% 61% 10% Current Revenue Mix (%) (1) Revenue Mix with Technology Solutions (%) (2) $26B $35B Broadline HW / SW & CE Data Center HW / SW Mobility End-to-End Portfolio Broadline Data Center Software & Cloud M
Slide 9: Combination Benefit: Extends Geographic Reach and Creates a More Balanced Footprint
9 Expands footprint into APAC Broadens capabilities in the Americas and Europe THE AMERICAS ¹ 39% 44% EUROPE ¹ 61% 53% ASIA PACIFIC ¹ 0% 3% Expands footprint into LatAm Combination Benefit: Extends Geographic Reach and Creates a More Balanced Footprint (1)First figure represents Tech Data geographic
Slide 10: Combination Benefit: Expands Go-To-Market Capabilities
10 Combination Benefit: Expands Go-To-Market Capabilities Adding Complementary Skills, Vendor Relationships and New Customers 14,000+ Skilled Employees Strong Management Team with Similar Values and Cultures Software & Cloud Data Center Consumer Electronics Converged & Hyper-converged Security Analy
Slide 11: Transaction Summary
11 Transaction Summary Transaction Consideration Sources of Financing Financial Upside Approval Process $2.6 billion in cash and stock transaction, subject to customary purchase price adjustments Cash of $2.4 billion; approximately 2.785 million shares of Tech Data common stock Net transaction value
Slide 12: Financing Considerations
12 Financing Considerations Incremental debt to include a combination of term loans and bonds Expect strong free cash flow to drive rapid deleveraging Expect to reach target leverage ratio of ~2.5x total debt-to-adjusted EBITDA within 18 to 24 months Expected to maintain investment grade ratings
Slide 13: Creates a Premier Global IT Distributor: From the Data Center to the Living Room
13 Creates a Premier Global IT Distributor: From the Data Center to the Living Room Significantly broadens value-added distribution business Increases ability to capitalize on key next generation technologies Expands go-to-market capabilities by adding complementary skills, vendor relationships and
Slide 14: Tech Data
D Tech Data | DTechData,