American electronics distributor Avnet buys Japanese firm Nippon Denso Industry

American electronics-components distributor Avnet Inc said on yesterday it agreed to buy Japanese company Nippon Denso Industry Co Ltd (NDI) in a move to double its business in Japan and boost earnings. Terms of the transaction were not disclosed.

NDI, a Tokyo-based distributor of electronic components, had annual revenues of 16.1 billion yen ($170 million) for its fiscal year ended 31 March 2008. NDI's president, Yukio Kawabata, will serve as a member of the executive management team of Avnet Japan.

In addition to its Tokyo headquarters and warehouse, NDI also has five sales offices within Japan, two international sales offices in Singapore and Hong Kong and an international subsidiary in Shanghai, China. With the addition of NDI, Avnet's subsidiary, Avnet Japan Co Ltd will more than double its business in Japan.

"The acquisition will add new semiconductor suppliers to Avnet Japan's breadth of product offerings," said Tom McCartney, president of Avnet Japan, in a press statement.

Avnet has been expanding its Asia operations this year, the fastest growing region for the $17 billion distribution giant. It bought a small systems integrator for $13 million in India in May. The NDI deal, which is expected to close by 29 December 2008, should immediately boost earnings, Avnet said.

Avnet is a technology Business-to-business B2B distributor headquartered in Phoenix, Arizona. Electronics Supply & Manufacturing magazine reports that Avnet Inc., a Fortune 500 company, may be the world's largest franchised distributor of electronic components and subsystems.

Avnet has 16 centers and locations in more than 34 countries. The company reported net income of $413 million on revenues of $15.7 billion last year. It employs around 12,000 people around the globe.