PHOENIX–=Today, Avnet (NYSE: AVT) announced it has completed the sale of its Technology Solutions business to Tech Data Corporation (NASDAQ: TECD). With the divestiture of these operations, Avnet is now solely focused on electronic components and integrated and embedded solutions, supporting its customers, ranging from makers to startups to large technology manufacturers, at every stage of the product lifecycle as they bring their latest innovations to market.
Avnet received approximately $2.4 billion in cash and shares of Tech Data common stock valued at approximately $245 million based on the closing price of Tech Data’s shares on February 25, 2017.
“Today marks a critical stage in the transformation of Avnet. We have doubled down on our electronic components and integrated and embedded solutions business, which is complemented by our reach into a broader market of customers in the idea stage through our recent acquisitions of Premier Farnell and Hackster,” said William Amelio, CEO of Avnet. “We will now be able to focus all of our attention and considerable expertise and scale in supporting our customers at every phase of the product lifecycle with services that offer a time to market advantage. We also have substantial financial resources to further drive our targeted investments in integrated and embedded solutions, IoT and digital platforms to create even more opportunities for makers, entrepreneurs and large manufacturers.”
Avnet’s more than 95-year heritage as a leader in electronic components distribution, as well as its design and supply chain capabilities, are central to the company’s ability to support customers. With Avnet’s strategic approach to acquisitions, the company has greatly enhanced its support for customers at every stage of the product lifecycle, offers true end-to-end solutions that accelerate a customer’s time to market and seamlessly transitions their products from prototype through to volume production. Avnet’s global workforce, partnerships with the world’s leading technology suppliers, and presence in more than 125 countries provide customers with strength and scale needed to navigate today’s rapidly changing technology industry.
Amelio added, “We wish our former Technology Solutions’ employees well as they start a new and successful chapter of their business history with Tech Data.”
Moving forward, the company will operate globally under the single name Avnet, dispensing with the business unit moniker “Electronics Marketing.”