Avnet, Inc. Announces Agreement to Acquire Assets of Nexicore Services; Terms Undisclosed
Avnet, Inc. (NYSE: AVT) announced today that it has entered into an agreement to acquire substantially all of the operating assets of Hartford Computer Group, Inc. and its subsidiary Nexicore Services LLC. Nexicore voluntarily initiated Chapter 11 proceedings in the U.S. Bankruptcy Court in Chicago today and will seek Bankruptcy Court approval of the asset sale to Avnet. The sale will be conducted under Section 363 of the U.S. Bankruptcy Code and is expected to be completed in 120 days or less. Nexicore is one of the leading providers of repair and installation services in North America for consumer electronics and computers, operating in three complementary business lines, including depot repair, onsite repair and installation, and parts distribution. Nexicore operates across the U.S. and Canada, providing these services for manufacturers, retailers, business, government, and consumer clients. The Nexicore acquisition will be deployed in Avnet Integrated Resources, which provides reverse logistics and after-market services to the global technology industry. Nexicore's approximately 500 employees will be offered positions within Avnet Integrated Resources.
“With this acquisition, we will continue to build our capabilities in the after-market services business as we deliver on our strategy to expand into adjacent businesses. Nexicore's breadth of services and experienced employees complement our existing lifecycle management operations. We will be able to provide services that benefit industrial customers as well as consumers, while having a positive impact on the environment,” said Steve Church, President, Avnet Integrated Resources.
“Becoming part of a global enterprise like Avnet is the next step in our company's evolution,” said Brian Mittman, CEO of Nexicore. “While Nexicore has experienced strong, profitable growth over the last several years, our management team believes that being part of Avnet will bring even greater capabilities and resources to our customers and employees.”
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