Date Published: 6 November 2020
CNPLaw LLP advised Tech Data on its acquisition of the Innovix group of companies from the Fortune Global 500-listed Jardine Matheson Group. Headquartered in Hong Kong, Innovix is a leading regional IT distributor with more than 8,000 channel partners in Asia. The acquisition will enhance Tech Data’s vendor portfolio, increase their customer base and strengthen their end-to-end solutions capabilities. Tech Data is a leading end-to-end technology distributor and is ranked No. 90 on the Fortune 500®. It has also been named one of Fortune’s World’s Most Admired Companies for 11 straight years.
Information on the transaction may also be found on https://asia.techdata.com/tech-data-completes-acquisition-of-innovix-distribution/
The CNP team who advised Tech Data was led by Wong Pei-Ling, and assisted by Jolyn Wah and Marvin Chua.
This matter was featured on The Lawyer Monthly Magazine. Click here to read the feature on the publication.
CNPLaw’s Corporate Advisory Lawyers
Pei-Ling has over 23 years of experience in corporate and cross-border transactions, and has advised on investments, joint-ventures and commercial transactions in Singapore and Malaysia. Over the years, she has also developed a practice in the areas of data protection, technology and employment.
Marvin’s main areas of practice include corporate advisory and general employment matters. Prior to joining CNPLaw, he trained and practised at a leading commercial law firm, under the practice areas of commercial litigation and international arbitration.
Each M&A deal entails the confluence of multiple legal disciplines. That is why we take great care when assembling a team for each deal, ensuring that there is an optimal mix of specialisation in the clients’ identified areas of concern, such as tax, employment and intellectual property, and necessary industry-specific experience.
We provide support to our clients at every stage of the deal. We will be there at the beginning of the process, helping to facilitate the negotiations between the parties and advising on the structure of the transaction. Once the parties have reached a consensus, we meticulously prepare the necessary documentation. Recognising that M&A deals are often the first page of a new chapter for the parties involved, we also provide post-transaction support to ensure a smooth transition such as the preparation of shareholder agreements, employment agreements, and other relevant commercial documentation.
At CNPLaw, we understand that the current rapid advances in technology are significantly disrupting the way businesses operate and forcing them to evolve to stay relevant. In this fast-changing world, our clients will need lawyers that they can rely on to help them navigate the challenges and stay ahead of the technology game.
Our technology law team constantly monitors the latest technological developments and assesses how they might impact our clients’ businesses. Our mission is to help our clients respond to and embrace these changes to enable them to thrive in this new environment.
We provide our clients with end-to-end, intuitive advice on all forms of technology and e-commerce related transactions.
TECH DATA’S ACQUISITION OF INNOVIX DISTRIBUTION
Tech Data has completed its acquisition of Innovix Distribution, a leading technology distributor in Asia, in the third quarter of 2020.
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.