Tech giant acquires software firm to accelerate growth

CLEARWATER — Tech Data (NASDAQ: TECD) has agreed to acquire Herndon, Va.-based DLT Solutions, a software and cloud solutions company that serves government and public-sector clients at the federal, state and local levels.

According to a press release, the transaction is set to close in Tech Data’s fourth fiscal quarter, pending regulatory approvals. Financial terms of the deal were not disclosed, though DLT Solutions will become a wholly owned subsidiary of Tech Data.

Clearwater-based Tech Data says the acquisition will help it accelerate growth and simplify complexity for its channel partners that serve the U.S. public sector space.

"This acquisition reflects our strategy of delivering higher value — strengthening our end-to-end portfolio and accelerating our capabilities in next-generation technologies — and we look forward to welcoming DLT’s colleagues to Tech Data," Tech Data CEO Rich Hume states in the release. "The addition also demonstrates how our portfolio optimization actions are freeing up capital, which is enabling us to invest in high-quality growth opportunities that advance our strategy and provide higher-value solution offerings to our partners.”

Tech Data, the second-largest publicly traded company in the region, reported gross annual revenue of $37.24 billion in 2019, up from $33.6 billion in 2018.

“We are thrilled to join the Tech Data team,” DLT Solutions CEO Art Richer states in the release. “This acquisition combines our public-sector expertise and capabilities with a leading Fortune 100 company known for creating value across the technology ecosystem. It represents an opportunity to apply our unique public sector value proposition to a broader set of vendors and partners.”