Avnet, Inc. (AVT - Analyst Report) recently acquired all of the operating assets of Hartford Computer Group, Inc. and its subsidiary Nexicore Services LLC.
The company completed the process through a Section 363 sale process in the U.S. Bankruptcy Court in Chicago.
Based in New York, Avnet is one of the world’s largest industrial distributors. 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.
Being a leading provider of repair and installation services in North America for consumer electronics and computers, Nexicore generated revenues of $85 million in 2011. Nexicore operates in three complimentary business lines which includes depot repair, onsite repair and installation, and spare parts management.
Avnet expects the acquisition to be immediately accretive to the bottom-line. Meanwhile, the assets from Nexicore will be deployed in Avnet Integrated Resources. This particular line from Avnet provides reverse logistics and after-market services to the global technology industry.
Earlier, Avnet announced that it 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.
We continue to maintain a Neutral recommendation on Avnet Inc. Our recommendation is supported by a Zacks #3 Rank, which translates into a short-term rating of Hold.