The Indian IT distribution has seen a major development today, whereby US-based value added distributor Tech Data has announced acquisition of Bangalore-based Inflow Technologies. The move will help Tech Data to establish itself as a strong distributor in the Indian market and expand its geographical footprint APAC region.
Traditionally, Inflow has been a niche technology distributor with expertise in areas like cybersecurity and networking, where Tech Data is relatively a new player in the local market and has a strong and steady distribution base. With Inflow coming into fold, Tech Data will certainly emerge as a significant distributor. Currently, Inflow enjoys a strong vendor partnership with over 40 networking and security brands along with a wide channel ecosystem of over 2,000 partners, since it was formed in the year 2005.
According to a Tech Data press release, the acquisition is subject to customary regulatory approvals and is expected to close during Tech Data’s first quarter of fiscal year 2021. The detail of the exact deal size is yet to be disclosed. By acquiring the business of Inflow Technologies, Tech Data will optimise its presence in the APAC region and strengthen the company’s end-to-end portfolio, enabling customers to offer a broader set of capabilities particularly around next-generation technologies.
Speaking exclusively to CRN India, Tech Data’s President, Asia Pacific, Jaideep Malhotra, shared that with the changing business model of IT infrastructure, Tech Data has transformed into an end-to-end IT distributor with an offerings portfolio that spans across endpoint devices, most advanced data center solutions and next-generation technologies. He said, “The combined entity will almost double our operations on assets, revenue, and geographical expansion front. India is the fastest-growing market for Tech Data. This acquisition will enable Tech Data to obtain a business platform in India to build a value chain by leveraging synergies between the two companies.”
In the last eight years, Tech Data has been preparing to meet the demands for third party platform technologies, including cloud computing, big data and analytics, AI and IoT. Moreover, the Florida based distributor is on a continuous spree of acquiring companies for bolstering its India operations. In the past, the distributor acquired Avnet Technology Solutions for strengthening its cloud operations.
“We have been investing in new emerging technologies such as IoT, analytics, cloud, security and services. It’s our core focus, followed by utilising digital capabilities to accomplish it. We are also optimising our global footprints, including in Asia Pacific and India. The acquisition of Avnet, and now Inflow Technologies will further disrupt the IT distribution business. Inflow is known for its services and technical capabilities in IT distribution. We will leverage its services and distribution assets and will further grow the business as we come together,” added Malhotra.
Currently, Inflow has a presence across India and South Asia. The business represents more than 40 vendors, including Cisco, Dell Technologies, Hewlett Packard Enterprise, and Palo Alto Networks, alongside Oracle, Juniper Networks, Kaspersky and Micro Focus, among others.
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