Acquisitions (Notes)

9 Months Ended

Oct. 31, 2016

Mergers, Acquisitions and Dispositions Disclosures [Text Block]

NOTE 3 — ACQUISITIONS

Planned Acquisition

On September 19, 2016, the Company entered into an interest purchase agreement with Avnet, Inc. (“Avnet”) to acquire Avnet's Technology Solutions business ("TS"). The Company will acquire TS for an aggregate purchase price comprised of $2.4 billion in cash and 2,785,402 shares of Tech Data's common stock, with the cash consideration subject to certain working capital and other adjustments. In connection with the interest purchase agreement, the Company also obtained a commitment letter for a $3.1 billion senior unsecured bridge loan facility, subject to customary conditions, in order to finance a portion of the proposed acquisition, if necessary. There were no amounts drawn on the commitment letter as of October 31, 2016 (see further discussion in Note 11 – Subsequent Events). The acquisition is subject to customary closing conditions, including regulatory approvals.

Acquisition and integration expenses in the accompanying Consolidated Statements of Income for the three and nine months ended October 31, 2016 are comprised of the following (in thousands):



	Three months ended		Nine months ended
	October 31, 2016		October 31, 2016
Transaction related costs	$	8,535	$	9,190
Professional services	3,978		5,305
Other	502		502
Total	$	13,015	$	14,997

In addition to the above expenses, the Company paid $15.0 million of acquisition-related financing costs related to the bridge loan facility, which is being amortized over the expected term of the facility. Interest expense in the accompanying Consolidated Statements of Income for the three and nine months ended October 31, 2016 included $3.4 million of amortization expense related to this facility.