After meeting regulatory and shareholder approvals, electronics distributor Avnet, Inc. has finalized its acquisition of rival Premier Farnell PLC.
The deal, valued at about $841.7 million, will broaden Avnet’s customer base and digital footprint globally, specifically in the U.K. where Premier Farnell is headquartered. The acquisition is immediately accretive to earnings, and once the integration is in place, Avnet expects to generate annual revenues from the acquisition in the $70 million to $80 million range.
William Amelio, CEO of Avnet, says the combination of the companies will create a distributor that will be able to support customers at every stage of product lifecycle. Specifically the combination will pair Avnet’s large-volume distribution with specialized distribution for end-to-end solutions, and accelerate time-to-market.
“As technology reaches deeper into more products, and innovation proliferates through the Internet of Things, the ability to reach a wider base of engineers earlier in the design process will be critical to our future growth and success,” Amelio says.
The acquisition will give Avnet access to Premier Farnell’s 430,000 community members in 36 countries as well as global sales and marketing resources.
