To strengthen its IP$E and embedded business
US electronics components distributor Avnet has agreed to buy UK-based Abacus Group for approximately GBP42.2m ($61m) to strengthen its IP&E and embedded business and expand its presence in Europe.
It said it gained permission from EU competition regulators on Monday to go ahead with the acquisition. The European Commission said in a statement that its investigation had shown there was no risk of collusive behavior to thwart competition.
Avnet said the total transaction value may add up to GBP97.9m ($141.6m) assuming a net debt position of GBP55.7m ($80.6m) for Abacus. A distributor of electronic components and embedded systems across Europe, Abacus reported total sales of GBP279m ($507m) in fiscal 2008. It will be integrated into Avnet’s European Electronics Marketing business.
Harley Feldberg, president of Avnet Electronics Marketing, said: The acquisition of Abacus represents an excellent strategic fit to our current business. It doubles our IP&E business across the region, significantly improves our market position in the UK, and establishes Avnet as a leading distributor of embedded solutions and displays throughout Europe.
Last year Avnet acquired UK-based Azzurri Technologies, a supplier of high technology semiconductors and systems products, and in 2007 it acquired the European infrastructure unit of IT services firm Magirus.