The US-based giant has launched a recommended cash offer valuing Dublin and London-listed Horizon at €101.3m (£80m). The offer is conditional on the receipt of EU merger control clearance.
Horizon, which counts Sun, EMC, Nortel, Oracle and IBM among its key vendors, confirmed a month ago that it had received an approach from an unnamed company, which it said may or may not lead to an offer (CRN Online, 13 March).
Around two-thirds of Horizon’s €288m annual revenues are thought to stem from its UK distribution business, with the balance generated from its Irish SAP integration arm.
Avnet was always mooted as a potential suitor alongside other US-based distribution heavyweights such as Tech Data, Ingram Micro and Arrow. In the last 18 months, Avnet has snapped up the IT Solutions unit of UK distributor Acal, Magirus’ HP and IBM business and Sun distributor Access Distribution.
New York-listed Avnet hit revenues of $15.7bn (£7.9bn) in its last financial year.
Roy Vallee, chief executive officer of Avnet, said: “The acquisition of Horizon will strengthen Avnet Technology Solutions' position in the UK IT distribution market and expand its geographic coverage into Ireland.
“We are also excited about the management and talented team of people at Horizon that will allow Avnet to accelerate the growth of Avnet Technology Solutions in Europe.”
Samir Naji, chairman of Horizon, said: “We are delighted to announce this transaction which is being unanimously recommended by the Horizon Board.
“The offer represents a substantial premium for Horizon's shareholders and, as an all cash offer, provides certainty of value in highly uncertain markets.”
Infrastructure provider says international sales now make up 51 per cent of its revenue
Suzanne Chappell of TMS plans sailing venture after selling Oxfordshire-based TMS to acquisitive Chess
Withdrawal of credit insurance by some providers a 'reflection' of current challenge facing IT sector, according to MD Steve Soper
SMART's UK managing director joins Lenovo to boost SMB business