Suitors vie for InTechnology arm
Avnet and Arrow Electonics go head-to-head but neither has put in with a formal offer for firm's distribution division
The battle to buy InTechnology’s distribution arm is hotting up following Magirus’s exit from the race, leaving distributors Avnetand Arrow Electronics to fight it out, CRN understands.
Rumours in the channel have been rife over the past few months about whether InTechnology could be looking to offload its distribution arm in favour of concentrating on its managed services business. However, InTechnology is delivering mixed messages about the future of the arm.
Steve Pearce, chief operating officer at InTechnology, told CRN: “The situation is that if someone comes along with a reasonable, sensible approach we would consider it.”
Pearce said three large companies have so far shown a “genuine, professional level interest” in the business, but no one has come forward with a formal offer.
“Let’s remember InTechnology is a large, profitable business, therefore would go for a substantial price tag,” Pearce added. “Being realistic there is only a handful of suitable companies that could afford the business.”
However, Peter Wilkinson, managing director of InTechnology, said: “We have not, and are not, looking to sell the business.”
Bernie Dodwell, European security manager at distributor Westcon, said: “Arrow has been fishing around for a few years to get into the European market.” He added that Avnet was likely to be in the strongest position to buy the firm’s distribution arm.
Keith Humphreys, managing consultant at research firm EuroLAN, said InTechnology has an attractive portfolio to potential suitors.
“I think it is likely that Arrow could acquire InTechnology’s distribution business,” he said. “It is one of the few large US distributors that has yet to make a move into the UK market. Avnet is another obvious choice to buy the business.”
However, Jacqueline Strayer, vice-president of corporate communications at Arrow, said: “We have no comment on this situation.”
Avnet and Magirus were unavailable for comment.
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