Avnet is set to buy the Magirus Group, a distributor of data center solutions and services.
Magirus will be integrated into Avnet Technology Solutions’ EMEA business.
This acquisition is expected to be immediately accretive to earnings and achieve Avnet’s return on capital goal of 12.5 percent within two years.
Magirus is a value-add distributor of software, systems and related services encompassing virtualization, storage management, cloud computing, security, intelligent networks and information life-cycle management services.
“The acquisition of Magirus will significantly enhance our competitive position in Europe and the Middle East by expanding our suite of solutions in high-growth technologies. Magirus increased its revenue 20 percent in calendar 2011, delivering powerful, flexible and cost-effective data center solutions from a breadth of suppliers, including Cisco, VMware and EMC. We welcome the knowledge and expertise of their talented management team and staff, who will allow us to further enhance the value we provide to our customers and suppliers,” said Phil Gallagher, president of Avnet Technology Solutions, Global.
Magirus has 400 business and technical professionals that help over 4,500 resellers, system integrators and IT service providers develop and deploy IT infrastructure solutions.
Magirus reported revenue of approximately US$530 million in the 2011 calendar year.
“Magirus represents an excellent expansion to our current operations as it adds complementary product lines across the region while meaningfully increasing our scale in important markets including Germany and France,” said Graeme Watt, president, Avnet Technology Solutions EMEA.
Magirus’ position with market-leading suppliers in high growth technologies will bolster our solutions practices and create significant cross-selling opportunities in the combined customer base. Its business model is a strong fit with our strategy to provide more value-add services, and the combined expertise of both organizations will enable us to accelerate the success of our customers and suppliers,” Watt added.