Positions Avnet as the premier provider for AI, IoT and digital data platform solutions
PHOENIX--(BUSINESS WIRE)--Avnet, Inc. (Nasdaq: AVT)
today announced that it will acquire Softweb
Solutions, Inc., a privately held software and Artificial
Intelligence (AI) company that delivers innovative software solutions
for Internet of Things (IoT) applications and systems designed to
increase efficiency, speed time to market, and help businesses transform.
Building on Avnet and Softweb’s track record for bringing IoT
solutions to market, today’s announcement formalizes a game-changing
element of Avnet’s overall solutions strategy. The integration of
Softweb’s best-of-breed AI software for IoT applications, along with its
data services and digital process capabilities, provides Avnet with a
rapid design, development, and deployment capability that further
enhances Avnet’s unique end-to-end ecosystem
and provides for new and recurring, margin-enhancing revenue
opportunities.
“By capitalizing on our longstanding partnership with Softweb, we are
adding new capabilities to Avnet’s already robust ecosystem -- combining
the power of their software expertise with the strength of our
end-to-end hardware ‘design to deploy’ ecosystem,” said Bill
Amelio, Chief Executive Officer, Avnet. “Softweb’s formidable IoT
and data platforms, plus their expertise in AI, data advisory and
digital development services, will enable us to bring even greater value
to our customers as a single partner resource while accelerating Avnet’s
growth.”
Softweb Solutions has approximately 500 employees who are located in
Dallas, Chicago and Ahmedabad, India. The Softweb team has delivered
more than 1,400 projects to 600 clients since its founding in 2004.
“We greatly value our existing business partnership with Avnet, and are
excited to officially join the Avnet team,” said Ripal Vyas, CEO and
owner of Softweb Solutions. “We are pleased that Avnet sees the immense
value of our AI and software technology services and solutions, and we
look forward to leveraging Avnet’s vast infrastructure, resources and
expertise as a global technology solutions leader that enhances
customers’ competitiveness and solves today’s business challenges.”
The transaction is expected to close by the end of December 2018. Terms
of the agreement were not disclosed. The acquisition will be immediately
accretive to Adjusted EPS. Softweb is expected to accelerate Avnet’s IoT
efforts in addition to contributing $0.05 - $0.10 in Adjusted EPS by
2021.
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.
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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: Avnet’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,
implementing and maintaining ERP systems, supplier losses and changes to
supplier programs, an industry down-cycle in semiconductors, 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 price discounts 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
Avnet’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.
About Avnet
Avnet is a global technology solutions provider with an extensive
ecosystem delivering design, product, marketing and supply chain
expertise for customers at every stage of the product lifecycle. We
transform ideas into intelligent solutions, reducing the time, cost and
complexities of bringing products to market. 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.
(AVT_IR)
Investor Relations Contacts
Tom Liguori, Avnet CFO
480-643-7550
or
Ina McGuinness
480-643-7053
investorrelations@avnet.com
Media Relations Contact
Maureen O’Leary, Avnet
480-643-7499
maureen.oleary@avnet.com