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: @Avnet
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with Avnet on LinkedIn: http://www.linkedin.com/company/avnet
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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.
Avnet
Media Relations Contact
Maureen O’Leary, 480-643-7499
maureen.oleary@avnet.com
Investor Relations Contact
Vincent Keenan, 480-643-7053
vincent.keenan@avnet.com