American multispecialist Avnet has entered into an agreement to sell its Technology Solutions operating group to broadliner Tech Data in a stock and cash transaction valued at approximately €2.35b, in what is surely the IT distribution biggest merger to date. The sale of this business provides both Avnet and Tech Data with immediate opportunities to focus on core strategies and scale their respective businesses, ultimately delivering greater profitability to their shareholders.
"We believe the acquisition of Technology Solutions by Tech Data is the best decision for our employees, customers, suppliers and shareholders. This transaction presents us with the best strategic path for Avnet's future success and profitability, and puts Technology Solutions in position to achieve breakthrough business results with Tech Data", said William Amelio, CEO of Avnet. "Moving forward, Avnet will focus its resources and investments on becoming a leader in design chain and supply chain services not only for our current customers and suppliers, but also for new markets. We will drive targeted investments in embedded solutions, Internet of Things (IOT) and critical digital platforms. By investing in these high growth areas, we can expand the breadth of our portfolio and attract new customers worldwide who depend on us to deliver world-class solutions."
Avnet's Technology Solutions operating group is an IT solutions distributor focusing on the datacenter, network, storage and security markets in more than 80 countries (in Austria, Belgium, Czech Republic, Denmark, France, Germany, Hungary, India, Ireland, Italy, the Netherlands, Poland, Portugal, Romania, Slovakia, Spain, Switzerland, Turkey and the United Kingdom for the EMEA region, which will all reinforce local TD Azlan teams, or ought to create new business, such as in Hungary, India, Romania or Turkey). It provides next generation solutions, marketing, training, resources and services that span the cloud to the data center and encompass the entire IT lifecycle. They work with value-added resellers to make it easier and more affordable to enter and excel in high-growth technology and vertical markets locally and around the world.
"We are excited to announce this transformative transaction, which creates a premier global IT distributor with the most diverse end-to-end solutions from the data center to the living room", said Bob Dutkowsky, CEO of Tech Data. "This combination complements our value-added distribution capabilities in Europe and the Americas, while establishing Tech Data's presence in Asia-Pacific, which will be a new market for us. As a result of the enhanced value proposition created through this transaction, Tech Data will be even better positioned to capture opportunities in next-generation technologies, deliver differentiated value to our customers and vendor partners, support career development for our employees, and generate strong returns for our shareholders. We believe the strategic and financial benefits resulting from this transformative combination are compelling for both our company and our stakeholders. We look forward to welcoming the Technology Solutions team to the Tech Data family and are excited about the future opportunities ahead."
Patrick Zammit, president of the Technology Solutions business, said, "Industry standardisation, innovation and converging technologies have transformed our industry. The broader portfolio created through this combination will enable both businesses to better capitalise on these trends, while also providing new opportunities for Technology Solutions to optimise and expand its offering, as well as unlock value in ways we could not historically. Given the strength of our customer and vendor relationships, our common cultures and values, as well as the skilled and engaged teams at both businesses, I am confident that this is a winning combination."
Tech Data + Technology Solutions: strong platform for growth and value creation
Terms and Financing
Under the terms of the agreement, which was approved by the boards of directors of both companies, Avnet will receive €2.15b in cash and 2.785 million shares of Tech Data common stock, currently valued at approximately €180m and representing an approximate 7% ownership position in Tech Data. Tech Data intends to finance the cash portion of the consideration through a combination of cash on hand, drawings under its existing revolver, and proceeds from a new term loan facility and senior notes, which are backstopped by fully-committed debt financing from BofA Merrill Lynch. Following the close of the transaction, Tech Data will continue to benefit from strong cash flows to support debt reduction and organic growth initiatives. Tech Data expects to maintain an investment-grade profile and to reach a target leverage ratio of approximately 2.5x total debt-to-adjusted EBITDA within 18 to 24 months. The deal is of course subject to the approval of competition authorities throughout the world.
Semiconductor specialist Avnet Silica has signed a distribution agreement with Dialog Semiconductor, a provider of highly integrated power management, AC/DC power conversion, solid state lighting (SSL) and Bluetooth low energy technology. The agreement is effective immediately covering all of EMEA, through Avnet Silica offices in Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Israel, Italy, the Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovenia, South Africa, Spain, Sweden, Switzerland, Turkey and the United Kingdom.
Avnet Silica will stock the complete range of Dialog Semiconductor products, including the SmartBond Bluetooth low-energy SoCs, PMICs and RapidCharge AC/DC power conversion solutions.
"By collaborating with Avnet Silica, Dialog is dramatically increasing the exposure of our innovative mixed-signal products to a much broader set of customers in EMEA", said Dipak Raval, Director of Sales - EMEA at Dialog. "Avnet's sales and expert technical support will enable us to capture business in fast growing and emerging markets across Europe, aligning with Dialog's commitment to continued growth."
"Our agreement with Dialog Semiconductor is intrinsically linked to Avnet Silica's commitment to provide our customers with the most innovative solutions. By offering the full range of Dialog's power management and connectivity solutions worldwide, our customers have access to a full range of IoT enabling products and services in one place, reducing time to market for low-power, differentiated products", said Mario Orlandi, President Avnet Silica.
Multispecialist Avnet has reached agreement with the Board of Directors of Premier Farnell plc (“Premier Farnell”), the maker of the Raspberry Pi, on the terms of a recommended offer for Premier Farnell by Avnet or one of its wholly-owned subsidiaries. The all-cash offer of €2.24 per share represents an equity value of approximately €836m and a 12.1% premium over the previous offer of €2 per share by Datwyler Technical Components UK. Headquartered in Leeds, United Kingdom, Premier Farnell is a global distributor of electronic components and related products delivering engineering solutions to the electronic system design community utilizing multi-channel sales and marketing resources. The transaction is intended to be effected by means of an English court-sanctioned scheme of arrangement and is subject to satisfaction or waiver of several conditions, including the approval of Premier Farnell shareholders and the court, receipt of regulatory approvals in the European Union, United States and Israel, and other customary conditions.
"This acquisition will significantly strengthen Avnet's digital footprint worldwide. The convergence of Premier Farnell's innovative online services with Avnet's world class supply chain will create customer service unparalleled in the industry", said William Amelio, interim Chief Executive Officer of Avnet. "The talented team of people at Premier Farnell will allow Avnet to enhance our customer experience and accelerate our global growth."
Upon completion, the transaction is expected to be accretive to earnings even before considering positive effects from any synergies realized, and supports Avnet's return on capital goals.
"Premier Farnell will bolster our strategy to provide a differentiated digital experience from product ideation through its lifecycle. Premier Farnell's customers gain access to an extensive suite of supply chain services allowing them to ramp new products to production volumes. Our customers will be able to do more technical research online through the services provided by Premier Farnell", said Gerry Fay, President of Avnet's Electronics Marketing, Worldwide "Bringing these two companies together allows us to capture market share earlier in the design process. In addition to deepening our customer base, this acquisition will enhance our go-to-market strategy as we target the industrial Internet of Things with edge-to-enterprise products and solutions."
Semiconductor specialist Avnet Silica has unveiled partnerships with Arkessa, an M2M managed services provider, Spica Technologies, who offer cloud based service solutions to capture, manage and present data, and UbiquiOS, supplier of embedded software to manage local connectivity and connectivity to the cloud. Avnet Silica has also signed an additional agreement with Sierra Wireless to expand the scope of products and services to include Sierra Wireless' entire device to cloud offering. Avnet Silica now provides Sierra Wireless SIM and Connectivity services, as well as Internet of Things (IOT) cloud platform services, in addition to the existing hardware cellular module business across Europe. All these new brands and offers are available through Avnet Silica offices in Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, India, Italy, the Netherlands, Norway, Portugal, Russia, Slovenia, Spain, Sweden, Switzerland, Turkey and the United Kingdom.
With the successful launch of Visible Things at Embedded World in Germany this year, Avnet Silica endeavours to become a key partner for customers looking for the complete edge-to enterprise solutions, from the chip level design, right through development and manufacture, ending in connected intelligent devices that can be deployed, monitored and managed out in the field. "It is important to us to align to and partner with the right suppliers so we are able to offer the right technologies to support our customers", said Philippe Fremont, vice president Technical Marketing, at Avnet Silica. "These new partnerships with data connectivity, cloud services and embedded connectivity software companies along with the extension of the Sierra Wireless product range available through Avnet Silica, positions us as the most well-positioned distributor to offer a full range of technology and services to accelerate the development and deployment of edge-to-enterprise IOT projects."
Semiconductor specialist Avnet Silica offers the full range of products available from Microchip, including the additional solutions for: Automotive, Touch, Memory and Security solutions added to the Microchip portfolio after its acquisition of Atmel. Atmel products now included within the Microchip collection include the complete broad-based product portfolio that spans microcontroller, wireless, touch, automotive, security and memory solutions. Following the acquisition, Microchip has become the third largest microcontroller manufacturer worldwide. Microchip is a market leader in the Internet of Things (IOT), having added products to its wireless portfolio including WiFi, Bluetooth, BLE and other RF protocols and the complete range is available through Avnet Silica's offices in Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, India, Italy, the Netherlands, Norway, Poland, Portugal, Russia, Slovenia, Spain, Sweden, Switzerland, Turkey and the United Kingdom.
"Avnet Silica continues to boast a strong partnership with Microchip that has developed over a number of years. The expansion of our portfolio of Microchip products from PIC MCUs, to touch, connectivity and Security solutions cover a huge range of market areas such as Industrial, Automotive, Aerospace and Internet of Things", said Mario Orlandi, President of Avnet Silica. "With the full range of Microchip products available through Avnet Silica, and our expert technical support, we are able to provide solutions to our customers across a wide variety of sectors."
Gary Marsh, VP Sales EMEA of Microchip commented, "For any company, innovation and differentiation is the key to prosperity. Microchip and Avnet aim to lead the quest for innovation by providing insight and knowledge to our customers with combined vision, differentiated products and services. With the recent acquisition of Atmel, Microchip is continuing to acquire and develop technologies to ensure we can provide the most comprehensive solutions for our customers and we are very happy to extend our relationship with Avnet Silica to include the entire Atmel product range. Avnet's engineering teams are already integrating solutions from the combined Microchip and Atmel portfolio into their focus market hardware and software platforms for embedded vision, security, IOT, aerospace and Datacom's to ensure customers can reduce development time and achieve their time-to-market goals. The combined portfolio enhances our already powerful lineup to provide the industry’s widest microcontroller portfolio. With thousands of PIC MCUs, MIPS, ARM AVR, connectivity and smart analog products we can help our customers design in the most optimized devices for their designs."
Avnet Silica Deutschland
Avnet Silica Deutschland
Hr. Miguel Fernandez
Handelsregisternummer : München HRB 152448