Speaking exclusively to CRN, Achim Apel, president of Avnet Technology Solutions EMEA, said that despite putting in what he called “a serious offer”, it was neither the right time nor firm for it to acquire. However, he did not rule out further acquisitions.
“The UK is our second biggest market and has a lot of potential,” he said. “My team is always looking for potential candidates, but it has to fulfil the right criteria. There are four criteria that a firm must fulfil: the first is the right culture; the second is its IT infrastructure; the third is its operational region; and finally what management it has in place.”
The race to buy InTechnology’s distribution arm has been the source of much speculation for the past two months. Magirus, Avnet and Arrow were all in the running until Magirus pulled out (CRN, 11 September).
A deal was thought to be imminent several weeks ago. However, since Avnet’s exit, leaving just Arrow in the running, sources have told CRN that the deal has now gone quiet.
One source said: “If Arrow acquired the division it wouldn’t have an immediate impact on the UK channel. However, in the long term it could have a massive impact on pan-European distributors, because this is where Arrow has pledged to grow.”
Alastair Edwards, senior analyst at Canalys, said: “It won’t make a massive UK impact, because it isn’t starting from scratch and building up a new company. However, there could be implications across Europe. This could change Arrow’s value proposition. [The deal] is a part of Arrow’s strategic push in Europe to acquire enterprise distribution businesses that take it out of the volume components business and make it an enterprise player.”
Both InTechnology and Arrow declined to comment.
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