RTI Purchase Broadens Avnet's Asia Presence
It has been announced that Avnet will be purchasing RTI Holdings Ltd., which is a value-added distributor with focus especially on wireless, optical, telecom, data communications and industrial components sold in Hong Kong and the People's Republic of China.
In 1989, RTI was founded, and is at present based in Hong Kong with over 700 customers positioned in some key verticals. In 2012, the company reported revenues of US $80 million, and will be acquired by and brought into Avnet Electronics Marketing, Asia.
It is expected that this acquisition will be a chance to merge RTI's product lines and technical bench with the logistical presence and efficiencies created throughout the Asia Avnet team. It is also expected that the latter will strengthen the move towards creating new markets.
The president of Avnet Electronics Marketing Asia, Stephen Wong, stated: "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 [sic]. RTI is a reputable player in the region, delivering a breadth of engineering services from basic circuit design to total product solutions."
It is expected that the transaction, which is now being approved, will be completed in the next month.
In the fiscal year ending June 2012, the revenue of Avnet stood at $25.7 billion, but the revenue of Q2 of this financial year has been "flat" on a year-over-year basis at $6.7 billion. On the other hand, the Asian business unit has noted year-over-year increase in revenue totaling up to almost 11 percent.
Singapore hosts the headquarters of Avnet Electronics Marketing, and there are offices in over 50 locations throughout Asia. (CY) Link