Distributors Move Quickly Out the Gate in 2008

By Sara Driscoll  |  Print this article Print


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Both Ingram Micro and Avnet have started the year with acquisitions.

The distribution sector began 2008 with a bang, after both Ingram Micro and Avnet made acquisition announcements around the globe.

Ingram Micro in Europe has agreed to purchase the assets of UK-based distributor Paradigm Distribution Ltd. The deal, for an undisclosed sum, will add AIDC/POS (automatic identification and data capture/point-of-sale technology) to Ingram's European portfolio. Paradigm and its employees will be rolled into Ingram's Data Capture/POS Division and headed up by existing managing director of Paradigm, Ralph Donohue.

Ingram has been looking to expand its POS/ AIDC division in Europe since it acquired Nordic POS distributor SymTech Nordic AS, in 2006.

Jay Forbes, president Ingram Micro EMEA, said in a statement: "This acquisition fits our global strategy of expansion and diversification in adjacent markets. Today we are a global distribution partner that specializes in data capture and POS technologies and delivers adjacent technologies to provide complete end-to-end solutions, services and support."

Jeremy Butt, VP WW Channels, Motorola EMb, said in a statement that "we are very pleased to see Ingram Micro join forces with Paradigm Distribution as it will further support our worldwide growth plans. Our experience with Ingram Micro DC/POS Division in the European Nordic region as well as in the U.S., Latin America and Asia Pacific, makes us fully confident that our reseller partners in the UK, Ireland and beyond will greatly benefit from this partnership."

In the United States, Ingram has been in the AIDC/POS market since its acquisition of Nimax in 2004, and last year signed a deal with NCR to distribute its POS systems.

Pointer Click here to read more about Ingram's POS strategy.

Avnet has also been on the acquisition trail in 2008 by acquiring YEL Electronics Hong Kong Ltd., an Asia Pacific-based distributor of IP&E (interconnect, passive, electromechanical) and limited semiconductor components.

Avnet said YEL will operate as a specialist division and Avnet executives said the firm intends to continue acquiring in the IP&E sector in Asia.

Harley Feldberg, president of Avnet Electronics Marketing Global, said in a statement: "The IP&E distribution industry in Asia is highly fragmented and Avnet intends to actively participate in its consolidation. With this acquisition, we have increased our IP&E business in Asia by over 50 percent and become the largest IP&E distributor in the region."

YEL generated approximately $200 million of revenue in the 12 months ended December 2007 with over 80 percent coming from IP&E products.

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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