Avnet has agreed to acquire the shares of RTI Holdings Ltd., a value-added distributor of wireless, optical, telecom, data communications, and industrial components in Hong Kong and mainland China, the company announced on 21 March.
Avnet, a Fortune500 company, is one of the largest distributors of electronic components, computer products and embedded technology serving customers globally. Founded in 1989 and headquartered in Hong Kong, RTI has a strong presence in mainland China serving over 700 customers across a range of end markets including telecom and datacom, industrial and digital home applications. The company has over 120 sales/FAE/CS employees, revenues of approximately US$80 million in the 2012 calendar year.
Avnet said in a statement that it will also acquire the shares of three related entities, RTI Technology China Limited, Eastele Technology China Limited, and DSP Solutions Limited under the deal.
This transaction has received all necessary regulatory approvals and is expected to close in the next 30 days.
"This acquisition is important to Avnet Electronics Marketing as the combination of RTI's focused technical expertise and Avnet's scale and scope further strengthen our competitive edge as we continue to grow in Asia," said Harley Feldberg, president Avnet Electronics Marketing. "This transaction also complements our existing offerings of product lines and allows us to expand our value proposition to our customers. With the addition of talented employees from RTI, I am sure we will be able to tap deeper into additional markets yet to be explored."
This acquisition, which will be integrated into Avnet Electronics Marketing, Asia is expected to be immediately accretive to earnings and supports Avnet's return on capital goal of 12.5 percent, the company said.
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