Scribona, Scandinavia’s broadliner distributor with revenues of 873 million Euro, grows tired of cost-cutting, krona-pinching and closing offices ...and sells out to pan-European rival Tech Data.

Scribona had 14,456,937 reasons to sell out as that matches their latest losses in Euro on their 2007 Annual Report. (Based on today’s currency exchange.)

Tech Data, driving a good bargain, will pay only the net asset value for inventory, some intellectual property, material contracts, office equipment and ”certain other” assets, plus a premium for Scribona’s operational assets (from €13.5m to €16.5m, depending upon performance criteria). Note the word “plus” as many of the industry gossips think the premium is the total sale price.

 

Scribona recently had offices and operations in all Nordic countries (with more than 6000 resellers and systems integrators). To reverse losses, they downsized their Finnish organization, closed the Malmö regional office, and their Danish operations.

"Through this transaction, Tech Data will gain a talented team of highly experienced distribution employees that will help strengthen our operations and drive stronger relationships with our key vendor partners and customers," saysRobert M. Dutkowsky, CEO of Tech Data Corporation.

On one hand, Tech Data has just bought itself the leading position in Scandinavia.  On the other hand, the way things are going in Scandinavia distribution, you might lose that hand.

How Tech Data Tells It