Avnet hints at plans to buy
Distributor unveils growth strategy
Distribution giant Avnet may look to acquire as part of its strategy to increase its vendor portfolio, with a Hewlett-Packard (HP) distributor tipped to be at the top of its list.
The firm has previously been mainly an IBM-only distributor in the UK. However, last year this changed with its acquisition of Sun distributor Access. The firm is now looking for other vendors.
Speaking exclusively to CRN, Rick Hamada chief operating officer at Avnet, said: “Our top three priorities are growth, growth, growth. We want an increase of coverage and to extend some of our existing partnerships. Expanding deals into Europe would also be logical.
“We would definitely consider HP as a global partner and want to be a bigger partner with it in Europe.”
Avnet currently has three country partnerships with HP, in Europe and also in the US.
“In 2006 we bought the assets of a German company called Zeta because it was an HP house – this could be an example of something you could see in the future,” Hamada added. “Our discussions with HP have been ongoing. After the acquisition of Compaq the vendor had a broad distributor portfolio, so it was unlikely they would consider bringing another partner on board. As HP works through its channel strategy we will continue to register our interest.”
Alastair Edwards, senior analyst at Canalys, said it was wise not to be too reliant on too few vendors.
“Ultimately this is also being driven by Avnet’s resellers – they will be looking for multi-vendor solutions, so Avnet needs to be offering at least three big brands,” he said. “Realistically Avnet would most likely have to acquire its way into this marketplace, but there are not many players left for it to choose from.”