News


Avnet buying Memec

18 May 2005 News

Avnet is buying Memec for approximately $676m in a stock and cash transaction, including the assumption of around $194m of Memec's net debt.

Memec, a leading global distributor specialising in semiconductors, generated approximately $2,3 bn revenue in 2004. In the same period it generated operating income of $63m. The privately-held company, which employs 2400 people, provides customers with engineering expertise and design services covering a portfolio of semiconductor devices from industry leading suppliers.

Memec will be integrated into Avnet and its Electronics Marketing Group. After the acquisition, Avnet's Electronics Marketing Group will have operations in 69 countries and anticipated annual sales of over $8,5 bn, according to the company.

Commented Avnet's chairman and CEO, Roy Vallee, "We are excited about the opportunity to significantly expand our presence in each of our existing three regions as well as gain entry into the important Japan market. Memec is a well-established semiconductor distributor with valuable franchises, strong technical capabilities and many talented people. In addition to delivering more value to both companies' customers and suppliers, the combination creates significant value for Avnet shareholders."

Memec, with operations in 33 countries and 130 cities, is the largest semiconductor distributor focused primarily on design chain services. In calendar year 2004, Memec grew total revenue approximately 27%, with the Americas accounting for 44% of Memec's 2004 revenue followed by the Asia region, including Japan, at 31% and Europe, Middle East and Africa at 25%.

Said David Ashworth, Memec's president and CEO, "Given the increased demands of global technology markets, we have been exploring a number of strategic alternatives and combining with Avnet provides the best future for Memec."

"The acquisition of Memec strongly enhances our global design chain capabilities while reinforcing our critical role in supply chain services," stated Harley Feldberg, president of Avnet Electronics Marketing. "With an expanded franchised supplier line-card, coupled with a portfolio of world-class design chain and supply-chain services, we are confident that we will further strengthen our relationships with customers and suppliers."





Share this article:
Share via emailShare via LinkedInPrint this page

Further reading:

Mouser stocks wide product selection from Renesas companies
TRX Electronics News
The products on offer include embedded solutions, semiconductors, optoelectronics, sensors and passive components.

Read more...
TUKS campus taken over by robots!
News
Students are required to build autonomous robotic vehicles with a sensor system to detect specific colours on a multi-coloured track.

Read more...
Altron Arrow FAE earns STMicroelectronics award
News
Renaldo Fibiger was one of only two people from the whole of the EMEA region who scored 30 out of 31 in the certification course.

Read more...
Infineon to exhibit at Embedded World 2022
News
This Infineon will be showcasing various focus areas dealing with embedded systems and the internet of things.

Read more...
Avnet Abacus congratulates Bourns on 75 years of innovation
Avnet Abacus News
This year also marks a milestone with the 21st anniversary of the distribution alliance between these two companies.

Read more...
New product marketing manager for Yamaha’s SMT section
News
Yamaha appoints Kamil Stasiak, a 10-year veteran of the industry, as product marketing manager for its surface-mount technology section.

Read more...
Partnership between mLab and MICT SETA announced
News
The MOU between the two parties will seek to upskill South Africans, allowing them to keep up with a rapidly changing employment market.

Read more...
Infineon’s easy-to-use replacement for legacy barrel jacks
Altron Arrow News
It is estimated that over 10 billion power tools are still using the old barrel jacks for their power needs, which will need to change.

Read more...
Worldwide silicon wafer shipments edge higher to new record
News
SMG reports that worldwide silicon wafer shipments in the first quarter of 2022 surpassed the previous record high set in the third quarter of 2021.

Read more...
Arrow Electronics announces alliance with Senseye
Altron Arrow News
The agreement will see Arrow Electronics together with Senseye bringing to market AI-based predictive maintenance solutions for industrial sectors.

Read more...