Clearwater-based Tech Data Corp. announced Wednesday that it has sold its operations in Chile and Peru and intends to do the same in Uruguay.
The company, ranked No. 111 in the Fortune 500, sold its Chile and Peru operations to Ingram Micro, a technology company and major competitor based in Santa Ana, Calif.
Tech Data, one of the largest technology distributors in the world, will expand its Latin America export business in Miami and its operations in Mexico, "a larger and more developed IT market," the company said in a statement.
"After careful consideration, we concluded that exiting these operations was in the best interest of our business and our shareholders," said Robert M. Dutkowsky, Tech Data's CEO. "Over the course of 16 years of operating in Chile, Peru and Uruguay, it has been difficult to achieve the necessary scale to consistently generate acceptable levels of profit and return on invested capital.
"As we have said throughout the last year, fiscal 2015 and 2016 are market and operationally focused years for Tech Data."
In 2012, Tech Data exited Brazil, citing similar difficulties in making money there.
Tech Data generated $26.8 billion in net sales for the fiscal year ended Jan. 31, 2014. Its stock closed Wednesday at $57.33 a share, up 85 cents. The company is set to release fourth-quarter and full-year 2015 financial results today.