Avnet to acquire Magirus

Acquisition sign

Avnet (NYSE:AVT) has announced it’s to acquire pan-European distributor Magirus Group for an undisclosed sum.

Magirus, a value-added distributor with strength in virtualisation and the datacentre, operates in eleven markets throughout Europe and the Middle East.

“The acquisition of Magirus will significantly enhance our competitive position in Europe and the Middle East by expanding our suite of solutions in high-growth technologies,” said Phil Gallagher, president of Avnet Technology Solutions, Global, in a statement.

He added that Magirus increased its revenue 20 percent in calendar 2011 through partnering with suppliers like Cisco, VMware and EMC. “We welcome the knowledge and expertise of [Magirus’] talented management team and staff, who will allow us to further enhance the value we provide to our customers and suppliers,” he said.

Graeme Watt, president, Avnet Technology Solutions EMEA said Magirus represented an “excellent expansion” to its current operations, adding complementary product lines across the region while increasing Avnet’s scale in the German and French markets.

“Magirus’ position with market-leading suppliers in high growth technologies will bolster our solutions practices and create significant cross-selling opportunities in the combined customer base,” he added. “Its business model is a strong fit with our strategy to provide more value-add services, and the combined expertise of both organisations will enable us to accelerate the success of our customers and suppliers.”

The transaction, which is subject to normal regulatory approvals, is expected to close in October 2012. Avnet said the acquisition “is expected to be immediately accretive to earnings and achieve Avnet’s return on capital goal of 12.5 percent within two years.”

Founded in 1981, Magirus has 400 business and technical professionals and its services span demand generation, pre-sales, consultancy, training, certification, implementation as well as support from its pan-European, multi-lingual support centre.

In 2007 Magirus sold off its IBM and HP business to Avnet, which left the distributor free to focus on developing and bringing new technologies to market.

The firm generated revenue of approximately $530m in the 2011 calendar year, and will be integrated into Avnet Technology Solutions’ EMEA business.

Last week Avnet said it was restructuring its UK operations in a bid to cut costs across the business.


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