Avnet adds to Europe strength with Azzurri acquisition

With the addition of design-in distributor Azzurri, Avnet Memec will increase its revenue base more than 40%.

By Suzanne Deffree, Managing Editor, News -- Electronic News, 1/10/2008

Continuing to make its interest in the European electronics supply chain well known, Avnet Inc has entered into a definitive agreement to acquire UK-based design-in distributor Azzurri Technology Ltd.

Upon closing, the embedded systems products specialist will be integrated into Avnet Electronics Marketing EMEA (Europe, Middle East and Africa), primarily within the Avnet Memec specialist division. The Avnet Memec division was born out of the top distributor’s 2005, $676 million buy of Memec Group Holdings, which, with operations in 33 countries and 130 cities, saw 25% of its total 2004 revenue come from EMEA and gave Phoenix-based Avnet a significant foothold in the region.

Adding to that foothold is Azzurri, which has operations in the UK, Germany, France, and Italy, with annual revenue of approximately $100 million. The 10-year-old company employs about 80 people and is focused on a small number of franchised suppliers with the prime objective of assisting customers with the design-in of complex semiconductors and sub-system level solutions.
 
“Adding Azzurri’s design and engineering expertise to our European team will enhance Avnet Memec’s position as the leading pan-European specialist distributor and will benefit both customers and suppliers alike,” Harley Feldberg, president of Avnet Electronics Marketing, said in a statement today. “The acquisition will add new semiconductor suppliers to Avnet Memec’s breadth of product offerings in microprocessors, microcontrollers and analog components and expands our presence in Europe’s largest markets.”

With the addition of Azzurri, Avnet Memec will increase its revenue base more than 40%. The transaction is expected to be immediately accretive to earnings, excluding minimal integration charges.
 
“Design-in distribution with exceptional service to our customers and suppliers is the foundation of our company,” said Mike Carlucci, Azzurri’s president and CEO, in the statement. “Avnet Memec has a similar approach to the marketplace and that is why the strategic fit is so strong. Both companies have much to gain from working together and merging them will bring many benefits to employees, suppliers and customers.”
 
Financial terms of the deal were not disclosed.

Other recent Europe-based distribution buys by Avnet include UK-based electronics distributor Acal and Germany-based passive components distributor Betronik.

Avnet also continue to acquire outside Europe, just last week announcing plans to buy YEL Electronics Hong Kong Ltd in an Asia-Pacific move.