Avnet, Inc. ( AVT - Analyst Report ) recently announced that the company will acquire Ascendant Technology LLC in a move to accelerate its global solutions distribution model.

Incorporated in 2003, Ascendant Technology provides IT services with operations in North America, Europe, Brazil and India,

In particular, the company specializes in developing end-to-end IBM solutions which enable organizations to optimize their investments in information technology and thereby achieve the desired business goals.

Generating revenues of $90 million, Avnet has supported large and small businesses to develop and deploy e-Commerce, enterprise portal and collaboration, web content management, infrastructure automation and cloud computing solutions.

The company is expected to close the acquisition in the next 45 days. The acquisition will be integrated into the operations of Avnet Technology Solutions.

Based in New York, Avnet is one of the world’s largest industrial distributors. The Technology Solutions segment from Avnet focuses on the global value-added distribution of enterprise computing servers and systems, software, storage, services and complex solutions.

Companies like Avnet need to continuously make acquisitions to grow its geographic footprint along with market coverage on a global basis for electronic components and computer products and solutions.

Earlier, Avnet recently completed its acquisition of Pinnacle Data Systems Inc. (PDSi). PDSi provides application-specific hardware and global support solutions for the world’s largest Original Equipment Manufacturers (OEMs).

PDSi generated revenues of approximately $29 million and the acquisition is expected to be immediately accretive to earnings,supporting Avnet's return on capital target of 12.5%.

Once integrated, PDSi will become a part of Avnet Integrated Resources, which provides reverse logistics and after-market services to the global technology industry.

The acquisition is another step in the company’s strategy to offer a new after-market services business, which focuses on repair, refurbishment, recycling and responsible disposition of IT products.

We continue to maintain a Neutral recommendation on Avnet Inc. However, we have a Zacks #2 Rank, which translates into a short-term Buy rating.