Avnet, Inc. (Nasdaq: AVT) today announced that it will acquire Softweb Solutions, Inc., a privately held software and Artificial Intelligence (AI) company that delivers innovative software solutions for Internet of Things (IoT) applications and systems designed to increase efficiency, speed time to market, and help businesses transform.
Building on Avnet and Softwebs track record for bringing IoT solutions to market, todays announcement formalizes a game-changing element of Avnets overall solutions strategy. The integration of Softwebs best-of-breed AI software for IoT applications, along with its data services and digital process capabilities, provides Avnet with a rapid design, development, and deployment capability that further enhances Avnets unique end-to-end ecosystem and provides for new and recurring, margin-enhancing revenue opportunities.
By capitalizing on our longstanding partnership with Softweb, we are adding new capabilities to Avnets already robust ecosystem — combining the power of their software expertise with the strength of our end-to-end hardware ˜design to deploy ecosystem, said Bill Amelio, Chief Executive Officer, Avnet. Softwebs formidable IoT and data platforms, plus their expertise in AI, data advisory and digital development services, will enable us to bring even greater value to our customers as a single partner resource while accelerating Avnets growth.
Softweb Solutions has approximately 500 employees who are located in Dallas, Chicago and Ahmedabad, India. The Softweb team has delivered more than 1,400 projects to 600 clients since its founding in 2004.
WANT TO BUILD A FINANCIAL EMPIRE?
Subscribe to the Global Banking & Finance Review Newsletter for FREE Get Access to Exclusive Reports to Save Time & Money
By using this form you agree with the storage and handling of your data by this website. We Will Not Spam, Rent, or Sell Your Information.
We greatly value our existing business partnership with Avnet, and are excited to officially join the Avnet team, said Ripal Vyas, CEO and owner of Softweb Solutions. We are pleased that Avnet sees the immense value of our AI and software technology services and solutions, and we look forward to leveraging Avnets vast infrastructure, resources and expertise as a global technology solutions leader that enhances customers competitiveness and solves todays business challenges.
The transaction is expected to close by the end of December 2018. Terms of the agreement were not disclosed. The acquisition will be immediately accretive to Adjusted EPS. Softweb is expected to accelerate Avnets IoT efforts in addition to contributing $0.05 – $0.10 in Adjusted EPS by 2021.
All brands and trade names are trademarks or registered trademarks, and are the properties of their respective owners. Avnet disclaims any proprietary interest in marks other than its own.
Follow Avnet on Twitter: @Avnet Follow Avnet on Instagram: http://www.instagram.com/Avnet Connect with Avnet on Facebook: http://www.facebook.com/AvnetInc Connect with Avnet on LinkedIn: http://www.linkedin.com/company/avnet
This document contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on managements current expectations and are subject to uncertainty and changes in facts and circumstances. The forward-looking statements herein include statements addressing future financial and operating results of Avnet and may include words such as will, anticipate, intend, estimate, forecast, expect, feel, believe, should, and other words and terms of similar meaning in connection with any discussions of future operating or financial performance, business prospects or market conditions. Actual results may differ materially from the expectations contained in the forward-looking statements.
The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: Avnets ability to retain and grow market share and to generate additional cash flow, risks associated with any acquisition activities and the successful integration of acquired companies, implementing and maintaining ERP systems, supplier losses and changes to supplier programs, an industry down-cycle in semiconductors, declines in sales, changes in business conditions and the economy in general, changes in market demand and pricing pressures, any material changes in the allocation of product or price discounts by suppliers, and other competitive and/or regulatory factors affecting the businesses of Avnet generally.
More detailed information about these and other factors is set forth in Avnets filings with the Securities and Exchange Commission, including Avnets reports on Form 10-K, Form 10-Q and Form 8-K. Except as required by law, Avnet is under no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Avnet is a global technology solutions provider with an extensive ecosystem delivering design, product, marketing and supply chain expertise for customers at every stage of the product lifecycle. We transform ideas into intelligent solutions, reducing the time, cost and complexities of bringing products to market. For nearly a century, Avnet has helped its customers and suppliers around the world realize the transformative possibilities of technology. Learn more about Avnet at www.avnet.com. (AVT_IR)
Investor Relations Contacts
Tom Liguori, Avnet CFO
Media Relations Contact
Maureen O’Leary, Avnet