Tech Data Acquiring Innovix Distribution for Asia Pacific Expansion
This is M&A deal 352 that ChannelE2E has covered so far in 2020. See the full M&A deal list here.
Tech Data says Innovix’s expertise spans:
- next-generation technology expertise across cloud, security, and endpoint offerings.
- Key geographies such as Hong Kong, Malaysia and Singapore.
- 500+ professionals.
- 8,000 channel partners in Asia.
Tech Data Acquiring Innovix: Executive Perspeectives
In a prepared statement about the deal, Jaideep Malhotra, president, Asia Pacific, Tech Data, said:
“Innovix is a leading regional IT distributor with an expansive range of IT products, solutions and services that will enhance our vendor portfolio, increase our customer base and strengthen our end-to-end solutions capabilities. Innovix’s strong team of 500+ experienced professionals have in-depth local industry knowledge that will augment our expertise in the market and strengthen our ability to deliver higher value to our channel partners across the region. This investment demonstrates our commitment to the Asia Pacific region and is an important, early milestone in our transformational journey since being acquired by Apollo Global Management. The addition of Innovix reinforces our collective focus on growth and diversification, supporting Tech Data’s announced plans to transform our company into one that defines a new standard of operational and cultural excellence in our industry.”
Added Eric van der Hoeven, chief executive officer, Innovix:
“At Innovix, we are proud to have built a 60-plus-year reputation as a leading IT distributor in the Asia Pacific region. Our focus on helping businesses accelerate growth and capitalize on digital transformation is perfectly aligned with Tech Data’s mission to connect the world with the power of technology, and we look forward to working together to serve this market and stay ahead of evolving technologies and consumption models.”
Distribution Industry Evolution
The deal surfaces amid multiple economic and business shifts in the distribution sector. Noteworthy developments include:
- Both Ingram Micro and ScanSource earlier this week disclosed mixed financial results amid the coronavirus pandemic.
- Ingram Micro may be acquired by private equity firm Platinum Equity from China’s HNA Group for about $7 billion, according to reports. Meanwhile, Ingram continues to double down on its cloud services and CloudBlue businesses.
- D&H continues to double down on SMB partners, while growing its cloud services platform.
- ScanSource is selling off some Latin America assets and shutting down a Salesforce-related cloud consulting practice.
- Synnex plans to separate into two publicly traded companies. The first is Synnex Technology Solutions for IT distribution, and related services. The second is Concentrix for CX solutions.
- Wayside Technology Group, parent of Lifeboat, acquired Interwork Technologies in April.