Avnet Completes Sale of Technology Solutions to Tech Data
February 27 2017 - 11:03AM
Business Wire
Creates a unique distribution model in the
electronic components industry that supports customers at every
stage of the product innovation and lifecycle
Today, Avnet (NYSE: AVT) announced it has completed the sale of
its Technology Solutions business to Tech Data Corporation (NASDAQ:
TECD). With the divestiture of these operations, Avnet is now
solely focused on electronic components and integrated and embedded
solutions, supporting its customers, ranging from makers to
startups to large technology manufacturers, at every stage of the
product lifecycle as they bring their latest innovations to
market.
Avnet received approximately $2.4 billion in cash and shares of
Tech Data common stock valued at approximately $245 million based
on the closing price of Tech Data’s shares on February 25,
2017.
“Today marks a critical stage in the transformation of Avnet. We
have doubled down on our electronic components and integrated and
embedded solutions business, which is complemented by our reach
into a broader market of customers in the idea stage through our
recent acquisitions of Premier Farnell and Hackster,” said William
Amelio, CEO of Avnet. “We will now be able to focus all of our
attention and considerable expertise and scale in supporting our
customers at every phase of the product lifecycle with services
that offer a time to market advantage. We also have substantial
financial resources to further drive our targeted investments in
integrated and embedded solutions, IoT and digital platforms to
create even more opportunities for makers, entrepreneurs and large
manufacturers.”
Avnet’s more than 95-year heritage as a leader in electronic
components distribution, as well as its design and supply chain
capabilities, are central to the company’s ability to support
customers. With Avnet’s strategic approach to acquisitions, the
company has greatly enhanced its support for customers at every
stage of the product lifecycle, offers true end-to-end solutions
that accelerate a customer’s time to market and seamlessly
transitions their products from prototype through to volume
production. Avnet’s global workforce, partnerships with the world’s
leading technology suppliers, and presence in more than 125
countries provide customers with strength and scale needed to
navigate today’s rapidly changing technology industry.
Amelio added, “We wish our former Technology Solutions’
employees well as they start a new and successful chapter of their
business history with Tech Data.”
Moving forward, the company will operate globally under the
single name Avnet, dispensing with the business unit moniker
“Electronics Marketing.”
Forward-Looking
Statements
This document contains certain “forward-looking statements”
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These statements are based on management’s current
expectations and are subject to uncertainty and changes in facts
and circumstances. The forward-looking statements herein include
statements addressing future financial and operating results of
Avnet and may include words such as “will,” “anticipate,” “intend,”
“estimate,” “forecast,” “expect,” “feel,” “believe,” “should,” and
other words and terms of similar meaning in connection with any
discussions of future operating or financial performance, business
prospects or market conditions. Actual results may differ
materially from the expectations contained in the forward-looking
statements.
The following factors, among others, could cause actual results
to differ materially from those described in the forward-looking
statements: the Company’s ability to retain and grow market share
and to generate additional cash flow, risks associated with any
acquisition activities and the successful integration of acquired
companies, an industry down-cycle in semiconductors, IT hardware or
software products, declines in sales, changes in business
conditions and the economy in general, changes in market demand and
pricing pressures, any material changes in the allocation of
product or product rebates by suppliers, and other competitive
and/or regulatory factors affecting the businesses of Avnet
generally.
More detailed information about these and other factors is set
forth in Avnet’s filings with the Securities and Exchange
Commission, including the Company’s reports on Form 10-K, Form 10-Q
and Form 8-K. Except as required by law, Avnet is under no
obligation to update any forward-looking statements, whether as a
result of new information, future events or otherwise.
For more information on today’s announcement, please visit Avnet
Investor Relations.
Follow Avnet on Twitter: @AvnetConnect with Avnet on LinkedIn:
http://www.linkedin.com/company/avnetConnect with Avnet on
Facebook: http://www.facebook.com/AvnetInc
All brands and trade names are trademarks or registered
trademarks, and are the properties of their respective owners.
Avnet disclaims any proprietary interest in marks other than its
own.
About Avnet
From idea to design and from prototype to production, Avnet
supports customers at each stage of a product’s lifecycle. A
comprehensive portfolio of design and supply chain services makes
Avnet the go-to guide for innovators who set the pace for
technological change. For nearly a century, Avnet has helped its
customers and suppliers around the world realize the transformative
possibilities of technology. Learn more about Avnet at
www.avnet.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20170227006023/en/
AvnetMedia Relations ContactMaureen O’Leary,
480-643-7499maureen.oleary@avnet.comInvestor Relations
ContactVincent Keenan, 480-643-7053vincent.keenan@avnet.com
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