Arrow Acquires EAD Provider Redemtech

{complink 453|Arrow Electronics Inc.} 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 {complink 577|Avnet Inc.} 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.

1 comment on “Arrow Acquires EAD Provider Redemtech

  1. stochastic excursion
    August 31, 2012

    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.

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