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:

Obituary: Steven James Meyer
January 1957 - January 2022

Technews Publishing News
It is with deep sadness and shock that we announce the sudden death of SA Instrumentation & Control Editor, Steven Meyer. Steven joined Technews in October 2007 in the position of Deputy Editor. His ...

Read more...
ICASA doles out provisional RF spectrum
News
The Independent Communications Authority of South Africa (ICASA) has concluded its analysis of applications for provisional assignment of radio frequency spectrum under the new ICT Covid-19 National State ...

Read more...
productronica’s hybrid format a success despite restrictions
News
Following its tried and trusted biennial scheduling, productronica 2021 was held on the fairgrounds of Messe München on 16-19 November. Strict hygiene rules were observed in accordance with Covid-19 protocols, ...

Read more...
Report evaluates market for Li-ion battery recycling
News
In the past, the lack of end-of-life batteries meant that the Li-ion (lithium-ion) recycling market had little opportunity to prosper. The transition to electric vehicles (EVs) is changing this. Recycling ...

Read more...
RFID market research explores 2021 and what to expect for the future
News
Despite a 5% drop in the global RFID market in 2020 compared to 2019 due to the impact of Covid-19, the market has recovered well in 2021. According to the newly released RFID market research report from ...

Read more...
SABS launches local content verification scheme
News
A new certification and grading scheme launched by the South African Bureau of Standards (SABS) intends to harmonise local content and local production for producers and manufacturers, levelling the playing ...

Read more...
DesignSpark to host new activist engineering programme
RS Components (SA) News
RS Components has launched its DesignSpark #ActivistEngineering programme, further strengthening the company’s commitment to engage and inspire design engineers across the globe to ‘make amazing happen ...

Read more...
October semiconductor sales up 24% over 2020
News
Global sales of semiconductors were $48,8 billion in October 2021, an increase of 24,0% from the October 2020 total of $39,4 billion and 1,1% more than the September 2021 total of $48,3 billion. Announced ...

Read more...
CSIR Learning Factory supports skills development and innovation in 4IR
News
The CSIR has established a Learning Factory to support South African industries in acquiring the skills needed to maximise the benefits of the Fourth Industrial Revolution (4IR). The first online course ...

Read more...
Samsung breakthrough demos in-memory computing using MRAM
News
A research breakthrough by Samsung Electronics has resulted in the world’s first in-memory computing based on MRAM (magnetoresistive random access memory). The research demonstrates Samsung’s advanced ...

Read more...