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Avnet, Inc. (NYSE:
AVT) announced today that it 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 the People’s Republic of China (PRC). In addition, Avnet will also acquire the shares of three related entities, RTI Technology China Limited, Eastele Technology China Limited, and DSP Solutions Limited. 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.”
Founded in 1989 and headquartered in Hong Kong, RTI has a strong presence in 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 that provide application engineering services, technical support and sales promotion activities to high-tech manufacturing firms across the region. The company generated revenue of approximately US $80 million in the 2012 calendar year. 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%.
“China remains a high priority and key strategic focus for Avnet Electronics Marketing. The acquisition of RTI not only expands our market coverage in industrial, telecom, optical and datacom but it also strengthens our demand creation resources,” said Stephen Wong, president Avnet Electronics Marketing, Asia. “RTI is a reputable player in the region delivering a breadth of engineering services from basic circuit design to total product solutions. The addition of RTI will further complement our strategic vision of providing best-in-class products and services to our customers in a critical growth region for Avnet.”