Positions Avnet as the premier
provider for AI, IoT and digital data platform solutions
PHOENIX - Media OutReach - 13 December
2018 - 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 Softweb's track record
for bringing IoT solutions to market,
today's announcement formalizes a game-changing element of Avnet's overall
solutions strategy. The integration of Softweb's 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 Avnet's 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 Avnet's 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. "Softweb's 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 Avnet's 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.
"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
Avnet's vast infrastructure, resources and expertise as a global technology solutions leader that enhances customers' competitiveness and solves
today's 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 Avnet's 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.
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Forward-Looking
Statements
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 management's 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: Avnet's 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 Avnet's filings with the Securities and Exchange Commission,
including Avnet's 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.
About Avnet
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)
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