Avnet buys itX for $77.5m
- 16 August, 2010 07:30
Avnet has emerged as the buyer for ASX-listed itX and will pay $77.5 million to pick up the IT distributor.
Last week itX's shares shot up over 18 per cent after it confirmed media reports about the acquisition.
The deal with Avnet is subject to itX shareholder approaval and is expected to close within five months.
"This acquisition is another step in our strategic expansion in the Asia Pacific region and, in particular, increases our scale and scope in the Australian market,” president, Avnet global president, Phil Gallagher, said in a statement. “The itX business adds complementary suppliers and business partners, while doubling Avnet Technology Solutions’ presence in Australia. With our broad global supplier relationships, combined with the skills and talents of the itX team, this acquisition will also help to continue to accelerate our organic growth in the region."
itX has 150 staff across offices Perth, Adelaide, Canberra, Brisbane, Melbourne and Sydney. It has been a long-time Sun partner (now Oracle) and also has arrangements with IBM, Citrix, VMware, HP, Apple, Red Hat and Trend Micro.
The distie recently reported a record after tax profit of $7.58 million for the full financial year, a year on year increase of 6.5 per cent.
itX managing director, Laurie Sellers, said the conditions for “our IT Distribution business were difficult in the second half of the financial year”.
“The acquisition of Sun Microsystems by Oracle in January 2010 caused temporary disruption to our supply chain and significantly impacted our revenues from this very important business segment.”
However, the software business remained strong while its web hosting and other technology products performed well. went into a