Arrow Electronics Inc.
) recently completed its previously announced acquisition of
ALTIMATE Group (ALTIMATE).
ALTIMATE Group, a subsidiary of DCC plc, distributes enterprise
and midrange computing products, services, and solutions in Europe.
Powered by a network of approximately 2,500 value-added resellers
and system integrators and employing 250 people, ALTIMATE generated
revenues of $298 million.
ALTIMATE currently operates across eight countries including
France, Benelux, Iberia, and the United Kingdom. The company holds
a broad product portfolio of hardware, storage, data management,
security, and infrastructure solutions and services.
Arrow expects the acquisition to broaden the company's portfolio
of value-added services and enterprise solution offerings. In
addition, the acquisition will also strengthen Arrow's
relationships with important suppliers throughout Europe, Middle
East and Asia.
In February 2012, Arrow Electronics acquired Asset Recovery
Corporation intending to boost the company's North American market
share along with diversifying its services portfolio.
Asset Recovery provides a wide range of electronics asset
disposition (EAD) services and targets sales of $20 million in
Earlier, Arrow also acquired Texas-based TechTurn Ltd.
Headquartered in Austin, Texas, TechTurn is an electronic asset
disposition (EAD) services provider, which possesses a broad
portfolio catering to technological recovery, refurbishing and
remarketing services which they globally offer, primarily to major
Fortune 500 companies.
The acquisition appears to be a profitable one as TechTurn has
been yielding favorable results of late with revenues expected to
exceed approximately $50 million in 2012.
After Beijing-based Seed International Ltd., TechTurn is the
next major acquisition executed by Arrow in recent times.
Companies like Arrow will have to continuously broaden its
product portfolio through acquisitions in order to retain its
position in the global market.
We continue to maintain a Neutral recommendation on Arrow.
However, we have a Zacks #4 Rank on the stock that translates into
a short-term rating of Sell due to the uncertain economic
environment, which shall adversely impact revenues.
ARROW ELECTRONI (ARW): Free Stock Analysis
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