Arrow Electronics Inc. (NYSE: ARW) is continuing to expand its presence in the electronics after-market services business. The Englewood, Colo.-based global distributor has agreed to acquire Columbus, Ohio-based Redemtech, Inc., a $60 million provider of electronics asset disposition (EAD) services.
Redemtech provides EAD services including data removal, data security, refurbishment, and remarketing of electronic assets, while ensuring compliance with local and national data security and environmental regulations, according to an Arrow press release. Redemtech has locations across the United States, and the company’s customers span a variety of end markets including financial services, consumer, and government.
“The acquisition of Redemtech further strengthens our industry-leading position in the EAD market and strategically expands our footprint and capabilities in this fast-growing market. We are excited to welcome the Redemtech team to the Arrow family,” said Paul J. Reilly, executive vice president, finance and operations, and chief financial officer of Arrow Electronics.
Driven in part by environmental regulations that require the safe disposal of electronics products, distributors are increasingly expanding into services that include refurbishment, recycling, collection, and disposal of products. This enables distributors to provide cradle-to-grave support for customers by both selling and collecting electronics assets. Arrow and competitor Avnet Inc. (NYSE: AVT) have a significant presence in the IT and enterprise computing business. Industry experts say there is a significant opportunity for companies that can repair and resell high-value computing equipment.
The acquisition of Redemtech, which has approximately 400 employees, is expected to close within the next 60 days.
Arrow buying a source for electronic parts that incurs no manufacturing costs is a move that gives it great potential cost advantages. Along with the reduction in electronic waste, this is significant step for the electronics business.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.