Avnet, Inc. Announces Acquisition of Genilogix
Avnet, Inc. (NYSE:AVT) announced today that it has acquired Genilogix LLC, an IT application lifecycle management firm. Genilogix provides a range of products and services that help channel partners and customers improve security, quality, performance, availability, governance, and regulatory compliance for mission-critical applications. As an HP Software Enhanced Elite Partner, Genilogix helps enterprises with all aspects of application lifecycle management from design to implementation to long-term support of the HP IT Performance Suite. Genilogix also offers a SaaS based project and portfolio management system for the Cloud. The company generated revenue of approximately US$23 million in the 2011 calendar year.
“The acquisition of Genilogix further strengthens our software and services portfolio to help drive growth for both our supplier and reseller partners,” said Jeff Bawol, president, Avnet Technology Solutions, Americas. “Genilogix's portfolio combined with the offerings available through our recent acquisition of Pepperweed Consulting greatly enhances our ability to deliver a comprehensive IT solution for our business partners, including those focused on high growth markets such as healthcare and government.”
Founded in 2001, Genilogix provides a range of products and services to help customers recognize value within their organization for the HP IT Performance Suite. Genilogix works closely with HP to offer innovative products and services that mitigate risk by ensuring security, quality, performance and availability for the enterprise. This acquisition will be integrated into the operations of the services group of Avnet Technology Solutions in the Americas.
“Strategic expansion of our software and services portfolio strengthens our ability to bring IT solutions to market quickly and cost effectively, while ensuring value is added at each point in the supply chain,” said Tony Vottima, senior vice president, Avnet Technology Solutions, Americas' services organization. “The expertise and relationships that the Genilogix team brings to our organization are directly aligned with our solutions distribution focus.”
This transaction is expected to be immediately accretive to earnings and support Avnet's long-term return on capital goal of 12.5%.
This press release 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," "expect," believe," “intend,” and "should," and other words and terms of similar meaning in connection with any discussions of future operating or financial performance or business prospects. Actual results may vary 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: the Company's ability to retain and grow market share and to generate additional cash flow, risks associated with any acquisition or disposition activities, the successful integration of acquired companies, any significant and unanticipated sales decline, 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 product rebates by suppliers, allocations of products by suppliers, 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 the Company'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.
Avnet, Inc. (NYSE:AVT), a Fortune 500 company, is one of the largest distributors of electronic components, computer products and embedded technology serving customers globally. Avnet accelerates its partners' success by connecting the world's leading technology suppliers with a broad base of customers by providing cost-effective, value-added services and solutions. For the fiscal year ended June 30, 2012, Avnet generated revenue of $25.7 billion. For more information, visit www.avnet.com. (AVT_IR)