Aptec sets global intentions with Tech Data takeover

Aptec’s formation of TDME sees Tech Data’s business move to a new entity wholly-owned by Aptec holdings, as exclusively revealed by Channel Middle East. The distributor revealed it’s hoping to hit revenues of US$1 billion very soon, and claims that before long TDME will turn Aptec into a global powerhouse.

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By  Dawinderpal Sahota Published  March 22, 2007

Aptec’s formation of TDME sees Tech Data’s business move to a new entity wholly-owned by Aptec holdings, as exclusively revealed by Channel Middle East. The distributor revealed it’s hoping to hit revenues of US$1 billion very soon, and claims that before long TDME will turn Aptec into a global powerhouse. Ali Baghdadi, CEO and chairman at Aptec, is enthralled at the prospects the TDME will offer. He revealed that the distributor has been pursuing this deal for “some time” and feels that Aptec is now 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. “We’ve got a great formula for combining services with products; a unique formula which even some of the global players haven’t got yet. Our formula is a winning one, and if we can scale it up, we will be a global player. So it gives us a chance to really be on the map.” Aptec claims it has strived for TDME’s formation to be a seamless transition from Tech Data, as the distributor insists that staff, customers and suppliers will 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 – we really have performed a miracle in keeping the set-up as it is,” he said. “The phone numbers will stay the same, people will not feel that e-mail addresses have changed. So, 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.” With TDME set to begin trading on the 25th March 2007, Baghdadi acknowledges it will take a little time to settle but expects to start drawing up expansion plans in the space of a few weeks. “The next step will be to start planning for expansion and the development of the business,” he revealed. “TDME will be taking 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, and the business model that 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.” Tech Data’s value-added enterprise entity, Azlan, is one that Aptec is particularly keen on developing, and the distributor revealed it will be partnering with Tech Data’s European operation to drive it forward. “Azlan is part of that strategic alliance that we’re going to have with Tech Data because the central supply and logistics of Tech Data in Europe will continue to support TDME on all the services that Azlan carries,” revealed Baghdadi. “We have an agreement that we are their arm in this region now.” In terms of personnel, Aptec claims it will be keeping Tech Data’s staff and will add more to complement them. “TDME has two business units and each one is led by its existing, or previous, manager from Tech Data. We’ve brought in one member of the board of directors and we’ve flown in two senior managers as well, to support them,” disclosed Baghdadi. He also claims that with Tech Data’s 2006 US$360m revenue now adding to Aptec’s own US$320m revenue last year, the company is not too far off seeing revenues of US$1 billion. “We hope to see Aptec, within a short space of time, reach the billion dollar goal, and we don’t see that as a far away objective,” concluded Baghdadi.

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