Aptec poised to confirm Tech Data Middle East takeover

Aptec is expected to officially announce tomorrow that it is taking over the operations of Tech Data Middle East in a move that marks the first piece of major consolidation in the Middle East distribution channel. Employees at Tech Data were informed of the decision late this morning.

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By  Andrew Seymour Published  March 21, 2007

Aptec is expected to officially announce tomorrow that it is taking over the operations of Tech Data Middle East in a move that marks the first piece of major consolidation in the Middle East distribution channel.

Employees at Tech Data were informed of the decision late this morning. The news follows a week of intense speculation that Tech Data was planning to exit the Middle East market. A host of names have been linked to the business following market reports that it was prepared to sell the operation.

“We have been told that Aptec Holding is going to take over the company, and this is expected to be effective beginning of April,” confirmed an insider at Tech Data Middle East. “Some employees have decided that they will leave the company, but a lot of the workforce will continue.”

Details of the transaction are not yet clear although it is understood that the legal entity set to take over the business is called TDME.

It will effectively replace Tech Data and operate as a standalone company for the immediate future. Senior management at Tech Data are expected to be heavily involved in the transition period, but there is no word yet on what their long-term position will be.

The merger creates a clear number two in the Middle East distribution market by bringing together the second and third largest players. Collectively the pair make sales of more than US$600m a year.

Neither Aptec or Tech Data management could be reached for comment. Aptec is expected to share its plans for the business and unveil a new structure when it formally announces the tie-up tomorrow.

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