Shares in US electrical parts distributor Avnet Inc (NYSE:AVT) rose after Tech Data Corp unveiled a deal to buy its IT business for US$2.8bn.
The stock lifted US$3.61, or 9.2%, to US$42.82 after the pair announced the cash and share deal on Monday.
Avnet plans to focus on other areas such as the Internet of Things while Tech Data, which distributes technology products, said the acquisition would expand its business geographically.
Tech Data said the deal will extend its operation to 35 countries from 21 at present, with more than half of the expected revenue of about US$35bn coming from Europe.
Avnet will get US$2.4bn in cash and 2.8 million Tech Data shares, resulting in a stake of about 7%.
