Shares of Avnet Inc. surged 2% in light premarket trade Monday, after the Tech Data Corp. announced a deal to buy Avnet's technology solutions business in a cash and stock deal valued at $2.8 billion. Under terms of the agreement, Tech Data will pay $2.4 billion in cash and 2.785 million of its shares. Tech Data said the deal, which is expected to close in the first half of 2017 to "significantly" add to adjusted earnings per share in the first year after closing. The company also expects to realize $200 million in present value of tax benefits. "This combination complements our value-added distribution capabilities in Europe and the Americas, while establishing Tech Data's presence in Asia-Pacific, which will be a new market for us," said Chief Executive Bob Dutkowsky. Tech Data's stock, which was halted for news until 7:30 a.m. ET, has gained 4.5% year to date through Friday, while Avnet shares have lost 8.5% and the S&P 500 has climbed 4.7%.
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