Tech Data has bought out Brightstar's 50% stake in their European joint venture for $165.6m.
The acquisition marks an end to the five-year joint venture and is the second big takeover in a week after BrightPoint was snapped up by fellow distributor Ingram Micro.The takeover is subject to regulatory approval but should be completed by the third quarter of the 2013 financial year.
Brightstar Europe's handset protection and insurance and buy-back and trade-in customers will be transferred to Brightstar. The companies said certain Brightstar Europe employees will be able to join the two companies.
Tech Data Corporation CEO Robert M. Dutkowsky said: 'Our European mobility business is a key element in our strategy of diversifying into higher growth, higher return specialty areas. What began as a greenfield operation with Brightstar in 2007, is now a well-established, European mobility market leader with sales of approximately $1.8bn in our last fiscal year.
'We are grateful to Brightstar for its partnership and expertise throughout the last five years, but believe that full ownership of our European mobility business is in the long-term best interest of our shareholders. We anticipate working with Brightstar on specific European opportunities in the future and remain committed to our TDMobility joint venture with them in the US.'
Brightstar chairman and CEO R Marcelo Claure said: 'Tech Data has been a great partner, and in just five years, we have jointly grown BEL from a startup to a leader in the European mobility distribution industry. We are now looking forward to operating in Europe under a Brightstar Corp fully-owned subsidiary and making our broad suite of services, including distribution, available to customers across Europe.'
Editor: Graeme Neill