Avnet plans to purchase Abacus Group

Target is a value-added distributor across Europe

By Tom Stundza -- Purchasing, 10/15/2008 12:34:00 PM

Avnet intends to acquire Abacus Group of the United Kingdom for $73 million in cash, while also assuming $109 million in debt. Founded in 1972, Abacus, with sales of $497 million for its fiscal year ended September 2007, is a leading value-added distributor of electronic components serving customers in 10 countries across Europe and in Hong Kong.

The Arizona Republic says Phoenix-based Avent's growth strategy is to expand through overseas acquisitions. The transaction, which is subject to the completion of a tender offer and European Union merger-control clearance, is expected to close in early 2009. Avnet CEO Roy Vallee says the acquisition will strengthen the company's operations in Europe and boost revenue.

The Avnet press release notes that Abacus has a portfolio of 180 supplier franchises covering semiconductor, interconnect, passive and electromechanical (IP&E) devices. In addition to electronic components distribution, Abacus Embedded Systems Group provides specialty distribution of displays, embedded computer and wireless communication products while its Alpha 3 segment offers electromechanical value-added sub-assembly services.