Avnet Extends Reach Into Indonesia

Avnet Inc. said it has acquired Datamation of Indonesia, a value-added distributor, as part of an overall plan to expand its geographic reach into emerging markets.

The 20-year old Jakarta, Indonesia-based distributor, formally known as PT Datamation Purwana Utama and PT Mitra Bisinfo Utama, sells IT infrastructure products--servers, storage and software--to a roster of 1,400 enterprise-focused system integrators and solution providers throughout Indonesia.

"This acquisition in Indonesia supports our strategic intent to further expand our footprint into emerging markets," said Phil Gallagher, president, Avnet Technology Solutions, Avnet's distribution arm.

Datamation carries IT equipment from Hewlett-Packard Co., IBM Corp., Lenovo, NetApp Inc., VMware and others.

The company employs about 175 people generating some $60 million in sales in 2009.

Officials said that Datamation will be integrated into Avnet's existing Asia Pacific business and immediately add to its earnings.

"The platform Datamation has developed will be a key factor in launching our solution distribution practice in Indonesia," said KP Tang, president, Avnet Technology Solutions, Asia Pacific.

"We will leverage their talented associates and supplier partner relationship to offer a broader suite of products and services to customers in the largest national economy in Southeast Asia," he said.

The purchase comes on the heels of Avnet's recent $252 million acquisition of data center distributor Bell Micro Inc.

Terms of the agreement were not disclosed.

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