The name Avnet is well known in the global electronic components distribution industry and the company reinforced its leadership position in the late ’90s and early 21st century through the successive acquisition of several leading competitors – including Marshall in the US, SEI and EBV in Europe.
During this period of expansion, Africa was also targeted, and the acquisition of Kopp Electronics led to the founding of local industry leader Avnet Kopp with its staff of some 80 people.
Avnet Kopp is a broad line distributor and can service the total needs of local OEMs, large or small. Although it has always carried a good analog product line, representing amongst others Texas Instruments, STMicroelectronics, ON Semiconductor and Philips, CEO Albert Kopp has for some time believed that the company did not have a strong enough focus in this area. During late 2002, agreement was reached with Analog Devices to distribute its products locally, this arrangement taking effect from 1 July 2003.
For Avnet Kopp this created a dilemma as Analog Devices was already represented in South Africa through Analog Data Products (ADP) and Parsec Components. Albert Kopp said that he had no intention of playing 'third fiddle' in an area already identified as requiring a new focus and negotiations were entered into with ADP who already had about an 80% market share for the Analog Devices product line. Amiable negotiations with the owner of ADP, the MB Technologies group, saw Avnet acquire ADP together with the services of its manager Stephen Silberman and his team.
The acquisition, which became effective in August this year, was negotiated locally with the approval of Avnet Europe and also had the full support of Analog Devices as well. For Avnet Kopp and South Africa, the acquisition is obviously a vote of confidence on the continued return on the investment that Avnet has made in this country, which is still viewed as the gateway into the economic growth market of the rest of the continent.
Although ADP has been consolidated within the Avnet Kopp head office in Sandton and will make use of the back-office infrastructure already established there, it will operate as a separate division under Silberman and his team, which has already been expanded through the addition of Erich Nast, another FAE from Avnet Kopp. The ADP name will be retained for operational and marketing purposes and the division will have full access to Avnet Kopp's branch offices and its FAE team. ADP will also now take responsibility for the full Avnet Kopp range of analog components. The high-end markets addressed will include energy metering, TV decoders, the defence industry and video surveillance - notably all growth markets for local manufacturers.
Kopp believes that with this enhanced focus on analog products and the broader range that ADP can now offer, the company will achieve increased market share, while Silberman will be able to expand his existing customer relationships. With ADP a part of Avnet Kopp, its establishment as a separate division will ensure continuation of its existing and successful management style and culture.
The acquisition of ADP also extended Avnet Kopp's portfolio, as the deal has brought with it sole representation for Rabbit Semiconductor (microprocessors and modules with a focus on connectivity) and Crystal Clear Technology (a Malaysian manufacturer of superior quality, competitively-priced LCDs). The products from these two companies will be added to the already extensive Avnet Kopp product line.
According to Albert Kopp, the acquisition of ADP complements and effectively completes the company's business portfolio and he is delighted to acquire the services of someone as experienced in the analog market as Stephen Silberman.
For more information contact Avnet Kopp, 011 809 6100, [email protected], www.avnet.co.za
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