Aptec's acquisition of Tech Data, one of the Middle East's best-known names in IT distribution, could bump its revenue to US$1 billion.
Tech Data blamed its withdrawal on "increasingly difficult" market conditions, but Aptec's CEO, Ali Baghdadi, was confident that the addition of Tech Data's business would boost group business.
He revealed that Aptec had been pursuing this deal for "some time" and felt that the acqisition put the company in a formidable position.
"We've got the widest range of business units and widest range of blue-chip manufacturers that any distributor would have," he said.
Aptec has formed a new business unit - Track Distribution Middle East (TDME) - which will take on the US-owned distributor's enterprise and components business.
In a statement, Tech Data said that the "majority" of its staff had been offered employment in the new operation. Aptec claimed it had strived for TDME's formation to be a seamless transition from Tech Data, and said staff, customers and suppliers would hardly notice any changes.
According to Baghdadi: "We made sure that there will be a minimum impact on the continuity of the business in the local market.
"Phone numbers, e-mail continuity, customers, credit lines are exactly the same as Tech Data. In fact, what they will see is a seamless transition."
Baghdadi expects to start drawing up expansion plans in the space of a few weeks.
"TDME will be talking to the Middle East and beyond. We've got ambitions, big ones, right now we're looking at Turkey, CIS, the Middle East and Africa. It will evolve and you'll see many things; the business model we will use will be scalable and it can be duplicated and extended to reach other parts of the world, so it's definitely in our plans," he said.For all the latest tech news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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