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Avnet Buys UK-Based VAD Acal's IT Solutions Group
4:05 PM EDT Thu. Sep. 27, 2007
The deal brings Avnet Acal's IT Solutions division, a value-added distributor of storage, networking and security products and solutions, and its Headway Technology Group which specializes in document imaging solutions.
Acal currently sells in the U.K., the Netherlands, Belgium, Germany, France and Sweden, and generated revenue of about $200 million in its last fiscal year. In addition to Acal's IT solutions line card and 180 employees, Avnet will take with it 2000 reseller and systems integrator customers.
As a value-added distributor, the company is a good fit for Avnet as it continues to expand on its strategy of offering resellers solutions, said Vince Keenan, vice president of investor relations for Avnet, Phoenix, Ariz.
"We're looking for growth opportunities and as you look at solutions you need to broaden your base of both suppliers and the technical skills that support solutions selling. We look at opportunities, and this was a great opportunity to pick up a really talented team with a unique line card that is very complimentary," said Keenan.
Acal IT Solutions will be fully integrated into Avnet's Technology Solutions division's European operations, bringing with it its line card of networking and storage products from Brocade, Cisco, Emulex, Juniper and Qlogic and document imaging products from vendors like Canon, Fujitsu and Kodak.
"When you look at solutions that are talking about automating a business process, this fits right in," said Keenan. "It very much can be added to the solutions we're doing in the server and storage area today."
Keenan said the deal is expected to close in two or three months, but is subject to shareholder and European Union approval.
The acquisition will have little effect on U.S. customers at first, he said. "These franchises are for Europe so there's not a whole lot of impact in the US. It does present opportunities in the future to bring things to the US but right now the franchise is in Europe."
