Avnet On Acquisition Binge

In another sign that consolidation is escalating in the channel, distributor Avnet has acquired Source Electronics Corp., a provider of outsourced custom programming services for integrated circuits. Just a week ago, Avnet completed the purchase of Horizon Technology Group, a technical distributor and integrator in Ireland and the U.K.

With both deals, Avnet is increasing its international footprint, a smart move in a market where current (and predicted future) overseas market growth is outpacing the U.S. Source Electronics is going to be integrated into the services operations of Avnet Logistics, a division that delivers global logistics and programming services. Avnet executives say the move allows Avnet to better serve the programming needs of the electronics industry and deepen the company's involvement with IC manufacturers. The programmable IC market is important for system designers because programmable ICs can lower system costs and enhance product flexibility.

The earlier Horizon acquisition expands Avnet's position in several product areas in the U.K. market, including high-growth segments such as storage, networking and security. The deal should also provide Avnet access to additional overseas channel partners, including system integrators, corporate resellers and managed service providers.

Itt's likely such merger and acquisition activity is going to escalate in the channel as leading companies seek to build their strategic position amid a slowing market.


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