Analysts Praise Synnex NAE Buy

By Sara Driscoll  |  Print this article Print


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Synnex's recent acquisition of New Age Electronics (NAE) has been welcomed by analysts as a good way for the firm to diversify.

Analysts have applauded the move by distributor Synnex to push further into the retail and consumer space by acquiring New Age Electronics (NAE)

The deal, for $54.25 million in cash, will give Synnex all of the assets of NAE, which distributes IT and consumer electronics to the retail sector. NAE’s revenues were in excess of $900 million and the firm has a relationship with HP, which accounts for approximately 89 percent of NAE’s fiscal 2007 revenue.

Brian Alexander, managing director of Equity Research: Technology Hardware/Distribution/EMS at Raymond James & Associates, said the acquisition significantly expands Synnex's footprint in the consumer electronics space.  "[The deal] adds new customer relationships and additional products from manufacturers such as HP, Panasonic, Sharp, Kodak and Samsung," he said in a statement.

Alexander said the move would also fit in well with Synnex’s dedicated consumer electronics division NEXCE, which it opened in September 2006 and its acquisition of consumer electronics distributor Redmond Group of Companies in May last year. 

"The acquisition is another example of Synnex's diversification strategy. Over the past two years, Synnex has invested more than $265 million in acquisitions that are either tangentially related or unrelated to IT product distribution," he added.

Sara Driscoll began her journalism career at 16 years old on her local newspaper, The Watford Observer. Working part time, she covered a range of beats. Leaving to complete her Journalism Degree at Bournemouth University, UK, Sara then went on to graduate and work for Emap. She began as a reporter on APR, Emap's construction title, being promoted to senior reporter with a year.Sara then joined VNU Business Publications as Deputy News Editor on CRN, the weekly trade title for channel players. She covered industry/business news from vendors, distributors and resellers, product announcements, partner announcements as well as market and trend analysis, research and in depth articles to predict up and coming trends in the sector. She was promoted within a year to News Editor, a year later to Deputy Editor and the following year became Editor. Sara remained editor of CRN for three years, launching the magazine on new platforms including CRN TV and eBooks, as well as several magazine and web site redesigns. She was called on for expert industry comment from various publications including appearing on live BBC news programs. Sara joined Ziff Davis Enterprise as Editor of eWeek Channel Insider. She runs the title in all formats – online up to the minute news, newsletters, emails alerts and events. She also manages the brand of Channel Insider in all formats - events, shows, awards, panel debates and roundtables.Sara can be reached at:sara.driscoll@ziffdavisenterprise.com

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