Leading IT distributor Tech Data Corporation today (11 September) completed its acquisition of Brightstar Corp's (Brightstar) 50% ownership interest in Brightstar Europe Limited (BEL).
Tech Data paid Brightstar $165.6m in cash for its equity in the joint venture and the repayment of all loans advanced by Brightstar to the company.
According to Tech Data, this means an adjustment that decreases additional paid-in capital within shareholders' equity by $86m to $90m, representing the purchase price premium paid to Brightstar for its share of the joint venture and costs incurred associated with the transaction.
BEL had been a consolidated subsidiary of Tech Data Corporation.
Tech Data said the transaction was not expected to impact on its fiscal 2013 net sales, gross profit or operating income. With the transaction now complete, Brightstar’s portion of BEL’s operating performance, (reflected as 'net income attributable to noncontrolling interest'), will be eliminated as of the closing date, resulting in an anticipated positive impact to fiscal 2013 net income and earnings per share attributable to shareholders of Tech Data Corporation.
'Acquiring full ownership of the joint venture reflects our commitment to and confidence in the European mobility distribution market,' said Robert Dutkowsky, CEO of Tech Data Corporation.
'Mobility is one of Tech Data’s fastest growing specialty businesses and an important element of our diversification strategy.
'We thank Brightstar for its partnership in helping to establish and expand the joint venture. Since the business already operates within our European infrastructure, Tech Data’s shareholders will now benefit from owning 100% of this highly successful specialty division.'
Editor: Shujaul Azam