Distributor Avnet has entered into an agreement to buy ASX-listed distributor itX in an all cash merger valued at $77.5 million.
It was subject to the approval of itX's shareholders, Australian courts, regulators and other conditions for a transaction of this type.
"The addition of new suppliers, solutions and services from itX, especially their strength in software, complements Avnet's expertise in the data centre sector and significantly expands the portfolio of solutions we can offer," said Avnet Technology Solutions Asia Pacific president KP Tang.
Avnet's global technology solutions president Phil Gallagher said it was a step to expanfing in the Asia Pacific and "in particular, increases our scale and scope in the Australian market".
"The itX business adds complementary suppliers and business partners, while doubling Avnet Technology Solutions' presence in Australia," he said.
Distributor itX has reserved the right to declare and pay to its shareholders a special dividend of up to $10 million in addition to its normal full year dividend subject to certain conditions.
If the special dividend is declared and paid, the cash consideration for the merger will be reduced accordingly. The transaction, which is expected to close in 120 to 150 days.
ItX entered a trading halt earlier today pending the announcement.
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