Avnet Agrees To Acquire Magirus Group
Avnet, Inc. announced that it has agreed to acquire the Magirus Group, a leading pan-European distributor of data center solutions and services. Magirus Group is a leading value-add distributor of software, systems and related services encompassing virtualization, storage management, cloud computing, security, intelligent networks and information life-cycle management services. Through its professional services portfolio and knowledge of the IT sector, Magirus Group enables business partners to take new technologies to market in eleven markets throughout Europe and the Middle East. The transaction, which is subject to normal regulatory approvals, is expected to close in October 2012.
Phil Gallagher, president of Avnet Technology Solutions, Global, commented, “The acquisition of Magirus will significantly enhance our competitive position in Europe and the Middle East by expanding our suite of solutions in high-growth technologies. Magirus increased its revenue 20 percent in calendar 2011, delivering powerful, flexible and cost-effective data center solutions from a breadth of suppliers, including Cisco, VMware and EMC. We welcome the knowledge and expertise of their talented management team and staff, who will allow us to further enhance the value we provide to our customers and suppliers.”
Founded in 1981, Magirus Group has 400 business and technical professionals that help over 4,500 resellers, system integrators and IT service providers develop and deploy IT infrastructure solutions that bring together traditional server, storage and network operations so that constantly changing business requirements can be supported more efficiently. Its services span demand generation, pre-sales, consultancy, training, certification, implementation as well as support from its pan-European, multi-lingual support center. Magirus generated revenue of approximately US$530 million in the 2011 calendar year, and will be integrated into Avnet Technology Solutions’ EMEA business.
Graeme Watt, president, Avnet Technology Solutions EMEA added, “Magirus is a high quality focused business and represents an excellent expansion to our current operations as it adds complementary product lines across the region while meaningfully increasing our scale in important markets including Germany and France. Magirus’ position with market-leading suppliers in high growth technologies will bolster our solutions practices and create significant cross-selling opportunities in the combined customer base. Its business model is a strong fit with our strategy to provide more value-add services, and the combined expertise of both organizations will enable us to accelerate the success of our customers and suppliers.”
This acquisition is expected to be immediately accretive to earnings and achieve Avnet’s return on capital goal of 12.5% within two years.