Avnet to acquire RTI Holdings
Date: 21/03/2013
Electronics component distributor Avnet has agreed to acquire the shares of Hong Kong based RTI Holdings Ltd. In addition, Avnet said it 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, according to Avnet.
"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."
RTI has 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."
