Tech Data’s Acquisition of Innovix Distribution

This acquisition expands Tech Data’s presence across the Asia Pacific region and strengthens its end-to-end solutions capabilities. Innovix Distribution will accelerate Tech Data’s growth in next-generation technologies, including within cloud, security and endpoint offerings across the region. Additionally, the acquisition will expand Tech Data’s business in key geographies such as Hong Kong, Malaysia and Singapore.

CNPLaw LLP advised Tech Data. The team was led by Wong Pei-Ling (Partner), who was assisted by Jolyn Wah (Associate) and Marvin Chua (Associate).

This transaction enhances CNPLaw’s portfolio of cross-border M&A deals. 

An Interview With The team at CNPLaw LLP

How has the M&A tech investment scene been in your jurisdiction? Did this acquisition represent the current M&A tech market?

Compared to other industries, the technology industry in Singapore has generally been shielded from the pandemic, with some technology companies experiencing accelerated growth in revenue and stock value. While M&A activity for the first-half of the year was quieter as compared to previous years, we remain optimistic about the M&A outlook in the technology sector.  As people adjust to the pandemic by embracing or increasing the use of technology, technology companies have in turn responded by increasing their product and service offerings, and growing their customer base through mergers and acquisitions.

This acquisition is reflective of current expansion trends by established companies in the technology space.

How did you and your team ensure this deal was the correct one for Tech Data?

The deal remains very much a commercial and strategic decision for the client.  We understand that the transaction will accelerate Tech Data’s growth in next-generation technologies and expand its business in key locations in the region. Our team was tasked with reviewing the information in the data room, liaising with the Tech Data team and their external advisers, negotiating the terms of the transaction with the seller’s lawyers, and ensuring that all legal issues were flagged to the client and dealt with appropriately.

Did you come across any challenges? If so, how did you overcome them?

The challenges were in the intensity of the negotiations, and coordinating the transaction with the different teams (both in-house and external) working remotely in Singapore, Malaysia, Hong Kong, USA and Europe during the pandemic.  We were able to overcome this as all teams were united with a common purpose of advancing the interests of the client and in closing the deal.  Despite the time differences, intensity of negotiations and all parties working remotely in their respective jurisdictions, the team members were highly responsive, competent and pulled no stops in moving the deal forward to a successful closing.