|To: Fred Mussler who wrote (548)||5/20/1999 7:33:00 AM|
|From: kendall harmon|
A 2 Billion dollar deal! Wow.|
Thursday May 20, 6:46 am Eastern Time
Company Press Release
SOURCE: Tech Data Corporation
Tech Data, GE Capital IT Solutions Sign Landmark Outsourcing Agreement
Distributor to Provide IT Procurement, Logistics, Systems Configuration and Assembly Services
CLEARWATER, Fla., May 20 /PRNewswire/ -- Tech Data Corporation (Nasdaq: TECD - news), a leading worldwide technology distributor, is becoming the IT procurement, configuration and assembly, and logistics services provider for GE Capital IT Solutions, a global one-source provider of integrated business and support solutions. The three-year agreement will focus on the U.S. and is projected to generate approximately $2 billion in annual incremental revenue for Tech Data upon full implementation. GE Capital IT Solutions will continue to provide its comprehensive suite of services directly to its customers, which include leading corporations and businesses throughout the world.
''This outsourcing agreement illustrates the profound role Tech Data has in the future of the IT industry,'' commented Tech Data Chairman and Chief Executive Officer Steven A. Raymund. ''Today's technology resellers and vendors are realizing that they can do business more efficiently and more cost effectively by leveraging our infrastructure and core competencies. GE Capital IT Solutions can now intensify its focus on providing superior customer service and developing world class business solutions while dramatically streamlining logistics, system customization and overall product fulfillment through Tech Data.''
As part of the agreement, Tech Data will assume control of GE Capital IT Solutions' 200,000-square-foot facility in Frederick, Md., effective August 1999. The operations include a 40,000-square-foot configuration and assembly center as well as inventory stocking and fulfillment services. All of the facility's employees will become Tech Data associates.
''By forming this agreement with Tech Data, we can continue to drive the efficiency and service levels necessary to achieve customer satisfaction in the hardware component of our solutions,'' said James E. Mohn, President & CEO of GE Capital IT Solutions. ''This agreement gives us the ability to lead the industry through an innovative distribution partnership that better serves our customers. We are also better equipped to deal with the issues inherent in a rapidly changing technology environment.''
Tech Data's Reseller Channel Commitment
Instrumental in GE Capital IT Solutions' Selection
Tech Data was selected as GE Capital IT Solutions' outsource partner after an extensive review of its capabilities and demonstrated commitment to serving the reseller channel. With the outsourcing agreement, GE Capital IT Solutions will no longer need to stock, configure or assemble technology products prior to delivery. The agreement coincides with another recent major industry announcement in which Compaq Computer Corp. is consolidating its number of distribution partners in North America from 39 to four, including Tech Data.
''We are giving technology resellers and manufacturers a decisive advantage by streamlining the supply chain,'' remarked Anthony A. Ibarguen, Tech Data's president and chief operating officer. ''Our focus is on driving costs out of the procurement, logistics and asset management functions while meeting growing demand for comprehensive multivendor solutions. The outsourcing agreement we announced today with GE Capital IT Solutions exemplifies this strategy and the beginning of an exciting new era in our industry.''
|RecommendKeepReplyMark as Last ReadRead Replies (1)|
|To: Steve Anglin who wrote (553)||5/20/1999 10:16:00 AM|
|From: Dale Stempson|
I'm happy for you and all here who held and are enjoying the ride. I unfortunately took some early profits by recently paring down my position. FWIW, I closed out the balance of my position this morning. I continue to like TECD long term here and suspect that once again I'll be leaving money on the table, but this puppy has been a huge winner for me and I'm content with the gains thus far and the opportunity to roll the cash into hopefully another profitable play. Good luck to all.|
Regards - Dale
|RecommendKeepReplyMark as Last Read|