As businesses in Europe increasingly look to adopt cloud technologies, Avaya announced that telecom and video VAD ScanSource Imago will be the first wholesale distribution partner in the EU for Avaya's cloud solutions, through its offices in Belgium, France, Germany, Poland and the United Kingdom. Based on Avaya's Powered by IP Office, ScanSource will provide its reseller partners with cloud-based solutions they can market to their end-user customer base. The cloud market is expected to rise across western Europe at a compound annual growth rate of 23.2 percent between 2015 and 2020, according to market researcher IDC, with spending in the region forecast to hit €21.8 billion this year. Avaya's solutions leverage cloud technology to meet businesses' needs for highly efficient and cost-effective engagement and collaboration offerings, enabling them to move at the pace today's digital market demands.
Resellers will be able to provide their customers with the same rich communications experiences they would expect from Avaya solutions delivered on-premises but in a streamlined model that allows companies to better manage costs by eliminating up-front capital investments and upgrades. Channel partners will also benefit from the combined reach and market share of Avaya and ScanSource, enabling them to build innovative solutions for their end-user customers and deliver future-proof communications experiences. Businesses will have greater flexibility to react to changing market conditions and demands, and will be better placed to leverage emerging technology trends. What's more, ScanSource is Avaya's largest global distribution partner and is committed to providing an in-depth knowledge of Avaya's solutions and the tools and value-added services resellers need to grow their business.
According to James Vickerage, the president of ScanSource Imago, "ScanSource is committed to helping its channel partners maximize their business opportunity and deliver the best experiences to their end-user customers. This partnership with Avaya will enable us to give our partners the freedom to sell cloud-based solutions to their customers, while benefiting from the reliability and quality that is synonymous with the Avaya brand." While Ioan MacRae, UK managing director for Avaya, says: "As enterprises in Europe increasingly look to adopt cloud-based solutions, the EU channel has been calling out for more agile methods of meeting their customers' demands. By combining with ScanSource, we can more effectively reach the indirect channel, enabling resellers to leverage our cloud-based solutions and create innovative offerings that meet today's digital business needs. We look forward to developing this partnership and offering a wider range of solutions and services in a cloud-based model."
Broadliner Ingram Micro has unveiled a change of leadership in its pan-EMEA division. Mark Chlebek replaces Robert Beck as executive director of this division, managing relationships with pan-EMEA vendor partners. Beck will "gradually withdraw from the day-to-day business", before ending his 25 year career with the distributor. A 20-year company veteran, having joined Ingram in 1997, Chlebek takes responsibility for "purchasing and business management" for regional vendor partners managed by the distributor on a centralised basis. As part of the EMEA senior management team he reports to global group president of EMEA Mark Snider. "I'm excited to have Mark Chlebek coming into this strategic role. Mark brings with him years of EMEA-wide experience driving innovation and growth for our business. I am looking forward to working with him in his new capacity", Snider says. "I'd like to take this opportunity to thank Robert Beck for his many years of service and dedication to Ingram Micro. I'd also like to thank him for volunteering to help with a smooth transition, ensuring Ingram Micro business will continue without interruption to our vendor and customer partners." Chlebek is but one recent promotion in Ingram management. In February the distributor appointed Jacek Murawski as VP of EMEA vender engagement, with Günter Schiessl and Jordi Muñoz reporting into him in roles overseeing the management of partnerships with volume and value vendors respectively.
Exclusive Group transforms leadership team
American broadliner Tech Data has completed its acquisition of the Technology Solutions business from its competitor Avnet. The combination creates a premier global end-to-end IT distributor with unmatched capabilities and the most diverse solutions from the data center to the living room. "This is a momentous day in our company's history and we are excited to welcome our talented colleagues at Technology Solutions to the Tech Data family", said Bob Dutkowsky, chief executive officer of Tech Data. "Our combined company is perfectly positioned at the epicenter of the IT ecosystem—with the scale and scope to serve dynamic markets throughout the world—giving our customers access to an end-to-end portfolio of IT solutions and efficiently bringing our vendors' products to new customers in more markets. Our organizations' common cultures, shared values and commitment to providing a world-class customer experience will serve as the foundation for the new Tech Data. Together, we will be an even stronger company, capable of doing more for our channel partners than ever before. We remain confident that the acquisition of Technology Solutions creates a winning combination for our customers, vendors, and shareholders, as well as the employees of both organizations."
The addition of Technology Solutions significantly broadens Tech Data's value-added distribution business (aka Azlan), increasing the company's ability to help its partners capitalize on next-generation technologies while enhancing its go-to-market capabilities with complementary skills, expanded vendor relationships, and new customer sets. The combined company has a larger and more balanced geographic footprint, including a presence in the Asia-Pacific region, a new market for Tech Data. The company has operations in 40 countries, with 14,000 employees serving approximately 115,000 customers in more than 100 countries. The company also announced its global executive leadership, as well as several new regional and global roles. Reporting to CEO Bob Dutkowsky are:
In Europe, Tech Data has also announced its European Executive Board, which will be led by Zammit:
The total purchase price at close was approximately €2.35 billion (subject to certain post-close adjustments), including €2.17 billion in cash, and 2,785,402 shares of Tech Data stock, representing approximately 7.3% of Tech Data's shares outstanding (after issuance of the new shares). Tech Data financed the cash portion of the purchase price through a combination of €900 million from its recent public debt offering and €900 million of bank term loans, and the remainder from drawings under other credit facilities and cash on hand. The transaction is expected to be significantly accretive to Tech Data's non-GAAP earnings per share in the first full year. The company expects to achieve annual cost savings of approximately €90 million within 24 months, with one-time costs to achieve these cost savings expected to be approximately €135 million.
Analog Devices has selected semiconductor specialist Arrow Electronics as its strategic distribution channel partner operating globally. Analog Devices will retain its current regional distributor network but will employ Arrow as its sole global distribution channel partner. The move is aimed at enabling a deeper level of support and greater breadth of services for Analog Devices' customers, who under this new and simplified structure will have the ability to leverage a strong, focused channel team, and draw on a comprehensive suite of end-to-end support services ranging from design and prototyping to logistics support.
"Analog Devices continues to invest on behalf of our customers, including expanding our direct sales team and, today, strengthening our channel operations by deepening our engagement with Arrow", said Martin Cotter, senior vice president, Worldwide Sales and Digital Marketing, Analog Devices. "Arrow's impressive ecosystem of technical sales and marketing, full product lifecycle solutions and logistics services enables Analog Devices to transform its channel strategy from a transactional focus to a strategic one. We are excited about the possibilities of this closer relationship for all of our customers."
Arrow has been one of Analog Devices' key channel partners for decades, providing specialized services and expertise ranging from global supply chain and logistics support to full product lifecycle design and production for Analog Devices' extensive portfolio of high-performance analog products, including data converter, signal conditioning, RF and microwave, power, DSP, and sensor ICs.
"Arrow has enjoyed a long and successful relationship with Analog Devices, and we're excited to see the innovative new technologies our enhanced collaboration will bring to market", said Andy King, president of Arrow's global components business. "Working together, our two companies can leverage the breadth and depth of Analog Devices' product portfolio and Arrow's end-to-end, full-product-lifecycle capabilities to help solve our customers' biggest analog and mixed-signal challenges, including those in the burgeoning Internet of Things market.". In the EMEA region, Analog Devices products are available through Arrow offices in Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Israel, Italy, the Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine and the United Kingdom.