Tech Data has agreed to acquire DLT Solutions, a solutions aggregator serving the U.S. public sector market.
Terms of the deal were not disclosed. When it closes, which Tech Data expects to happen in the fourth quarter of its fiscal year, DLT will operate as a wholly owned subsidiary of Tech Data going forward.
Adding DLT’s solutions and services to Tech Data's offerings will make pursuing public sector opportunities easier for its partners, the company says, and provide access to specialized products tailored to the government market plus more than 50 in-house government contract vehicles.
“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,” said Tech Data CEO Rich Hume in a press statement. “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.”
Based in Herndon, Va., DLT sells cloud computing, cybersecurity, analytics, and IT infrastructure solutions, as well as business applications and application lifecycle resources, to customers in the federal, state, and local markets. Cloud, security, and analytics are all among Tech Data’s strategic focus areas for the future.
“We are thrilled to join the Tech Data team,” said Art Richer, DLT’s chief executive officer, in prepared remarks. “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.”
Like Tech Data, DLT describes itself as a solutions aggregator rather than a distributor. Aggregators, according to Tech Data executives, assemble hardware and software from multiple suppliers and combined them with in-house services to provide complete answers to business needs.
In August, Tech Data announced a new program that allows channel pros without government contracts to partner with IT providers that do.
The DLT deal comes some two and a half years after Tech Data’s $2.6 billion acquisition of Avnet Technology Solutions.