Avnet Sells Off HP End-User Business To Logicalis

Avnet said the deal was a move to best serve customers and employees by making its end-user organization part of a company focused solely on serving end users. Terms of the deal for the $100 million business were not disclosed. "Logicalis is exactly what we were looking for in a leading, growing business partner to continue serving the customers that have been so important to us," said Steve Tepedino, president of Avnet Technology Solutions, Americas. "We wanted a company that would provide a seamless transition and that had a similar culture and business strategy."

The deal follows a series of recent acquisitions by Logicalis, including a highly charged push into the IBM business. Earlier this year, Logicalis acquired Eisco, a $20 million IBM Business Partner in Lincolnshire, Ill. Last year Logicalis acquired IBM Business Partner Solution Technology of Indianapolis.

Once the acquisition is completed, Logicalis' U.S. revenue will exceed $450 million and its annual overall revenue will be approximately $700 million. Logicalis, Bloomfield Hills, Mich., expects the deal to close by January 2006. Mike Cox, president and CEO of Logicalis North American operations, said the deal opens the door for Logicalis to extend its U.S. footprint into the Southwest and Central regions. Furthermore, he said, it solidly positions Logicalis not only as a leading Unix platform and storage integrator, but also as a leading Wintel/Linux platform solution provider. "The Avnet HP enterprise end-user business is a perfect fit for Logicalis," said Cox.

Logicalis is a part of Logicalis Group, a division of Datatec Limited, a $3 billion business listed on the Johannesburg Stock Exchange. Datatec also owns value-added distributor Westcon Group.