Tech Data has finalised an agreement to acquire DLT Solutions, the software and cloud solutions company serving the US public sector.
According to a statement by Tech Data, the acquisition is subject to customary regulatory approvals and is expected to close in the fourth fiscal quarter. Once the transaction is completed, DLT will be a fully owned subsidiary of Tech Data.
Expanding customer base
As a government solutions aggregator, DLT’s primary customer base sits in the US public sector, with the company primarily serving federal, state and local markets with next-generation technologies including cloud and cybersecurity.
DLT is headquartered in Herndon Virginia and brings a network of channel partners as well as a portfolio of more than 50 in-house contract vehicles to Tech Data.
According to Tech Data, the acquisition enables the company to develop its end-to-end portfolio and establish more opportunities to better serve channel partners working the US public sector space.
Developing partner opportunities
It also enables Tech Data to engage with systems integrators and other types of partners that didn’t previously have a relationship with the company.
Rich Hume, CEO of Tech Data, says the acquisition reflects the company’s broader strategy to provide higher-value solution offerings to partners.
“The addition also demonstrates how our portfolio optimisation 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,” Hume says.
In a statement, DLT CEO Art Richer said, “Government customers continue to look to new cloud and as-a-service delivery models requiring access to more technologies and partners to deliver them.
“The addition of DLT enables Tech Data to proactively develop opportunities, accelerate growth and simplify complexity for its channel partners serving the US public sector space.”
In 2015 DLT was acquired by private equity firm Mill Point Capital. Further details of the transaction with Tech Data were not disclosed.
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