Avnet Technology Solutions exits MEA

Distributor concludes it could not make a sufficient return from the region

Avnet Technology Solutions (TS) is exiting the Middle East and Africa (MEA), citing concerns over the returns it was generating from the region.

In the latest example of Avnet exiting areas of its business that are either non-core or not profitable, the distributor is shuttering its TS MEA operations, which include offices in UAE and Saudi Arabia.

It stressed that its components business in the region is unaffected by the move.

In a statement, Avnet said its immediate priorities are to ensure it provides support to employees affected by the process and assist partners and suppliers as it manages its exit from this market.

Less than two years ago Avnet TS was trumpeting MEA as an "emerging market with high growth potential" and it bolstered its footprint in the region when it acquired Magirus last year.

"Having completed a thorough review of our business in the Middle East and Africa, we have determined that we are unlikely to make the necessary returns needed to meet our strategic goals in the short or mid-term and we have taken the decision to close our TS EMEA operations in MEA," Avnet said in a statement.

"The closure will not impact the computer components and integrated solutions business which continues to support key partners in the region.

"This has been a difficult decision where we have been decisive in taking action to realign resources from underperforming businesses to areas that can deliver strong performance for Avnet, its suppliers and business partners."

Avnet TS recently shut its UC business unit in the UK after concluding UC was non-core to its strategy. It said the move would allow it to invest in more strategic areas of the business.

Avnet TS EMEA sales fell 14.6 per cent to $783m (£512m) in Avnet's most-recent quarter, stripping out the contribution of Magirus.