Avnet

Avnet, Inc. is a United States-based technology distributor and solutions provider headquartered in Phoenix, Arizona. Its business connects manufacturers of electronic components and embedded technologies with original equipment manufacturers, contract manufacturers, design firms, and other commercial customers. Rather than operating primarily as a consumer-facing electronics retailer, Avnet works in the business-to-business design and supply chain, helping customers select components, develop prototypes, manage procurement, and move products into volume production. The company traces its origins to 1921, when Charles Avnet began selling surplus radio parts on the Radio Rows of major American port cities. As factory-produced radios displaced some repair-part retailing in the 1920s, Avnet adapted by supplying parts to manufacturers and dealers. It also diversified into car-radio and automobile assembly kits before shifting more decisively toward wholesale distribution during the Great Depression. During the Second World War, the business produced antennas for the U.S. armed forces; afterward it returned to the purchase and sale of surplus electrical and electronic parts. Avnet was incorporated in 1955 as Avnet Electronic Supply Company, initially selling products such as capacitors, fasteners, and switches. Its subsequent development combined organic expansion with acquisitions in connectors, semiconductors, relays, potentiometers, audio equipment, and related technologies. The company entered the public markets in the late 1950s and became a New York Stock Exchange company in the 1960s. Its acquisition of British Industries Corp. in 1960 broadened the business into audio equipment and other product categories, while later transactions helped establish a larger component-distribution platform. A major strategic turning point came in 1973, when Avnet became Intel's first distributor. The relationship helped position Avnet within the growing computer and semiconductor industries and supported the distribution of computer peripherals, systems, software, integrated circuits, and microprocessors. Avnet reached $1 billion in revenue in 1979, according to historical company reporting cited in reference material. During the late twentieth century, it increasingly emphasized sales coverage, warehouses, inventory management, product development, and design support. Avnet expanded internationally and through acquisitions in the 1990s and 2000s. In 1998, its headquarters moved from Great Neck, New York, to Phoenix, and Roy Vallee became chairman and chief executive officer. The 2001 acquisition of Kent Electronics strengthened the company's component-distribution and network-installation activities. In 2010, Avnet acquired Bell Microelectronics, adding scale in computing and storage-related distribution. Later acquisitions expanded its technology-solutions and embedded-design capabilities. In 2016, Avnet sold its Technology Solutions operating group to Tech Data in a transaction involving cash and Tech Data shares. The divestiture sharpened Avnet's focus on electronic components, embedded systems, and design-chain services. In the same year, it acquired Premier Farnell, a major electronics distributor and developer community platform. Premier Farnell brought the element14 community, online commerce capabilities, engineering content, and access to small and medium-sized design customers into Avnet's portfolio. Avnet's present business centers on the design chain and supply chain. Its services can include component sourcing, technical advice, reference designs, engineering and prototyping support, logistics, inventory programs, and production-scale fulfillment. The company serves industries including industrial automation, communications, automotive, aerospace and defense, healthcare, energy, transportation, and consumer technology. Its role is especially significant for customers that need to integrate semiconductors, embedded proces…

Avnet began in 1921 when Charles Avnet, a Russian-Jewish immigrant, entered the emerging radio-parts trade. He bought surplus components and sold them on Radio Row in American port cities. When mass-produced radios reduced demand for some loose parts, Avnet changed its customer base and began supplying manufacturers and dealers. The company also experimented with car-radio kits and automobile assembly kits. During the Great Depression, it moved away from retail sales and toward wholesale distribution. World War II brought defense-related production, including antennas for the U.S. armed forces. Charles Avnet's son Lester joined the business during this period. After the war, the company resumed buying and selling surplus electrical and electronic material. It incorporated in 1955 as Avnet Electronic Supply Company, with a product range that included capacitors, fasteners, and switches. A connector assembly plant opened near Los Angeles in 1956 to serve aircraft-industry customers. The company later adopted the name Avnet Electronics Corporation and entered public trading. Avnet's acquisition strategy accelerated in the 1960s. Its purchase of British Industries Corp. in 1960 added audio equipment and other businesses, including die-casting machinery, guitars, and television antennas. The company briefly owned record labels, including Liberty Records and Blue Note, and acquired Guild Musical Instruments in 1965. Other transactions broadened its exposure to semiconductors, relays, potentiometers, and related electronic products. In 1964, the corporation became Avnet, Incorporated; Charles Avnet died that year and Lester assumed leadership. The company became Intel's first distributor in 1973. This relationship helped Avnet participate in the expansion of computer hardware and semiconductor distribution, including peripherals, complete systems, software, integrated circuits, and microprocessors. Avnet reached $1 billion in revenue in 1979. After Lester Avnet's death that year, Simon Sheib became chief executive. The company combined with Hamilton Electro Corporation and developed a larger marketing and distribution operation focused on sales, warehouse infrastructure, inventory, product development, and geographic expansion. During the 1980s and 1990s, Avnet increasingly concentrated on technology distribution. Roy Vallee became chairman and chief executive in 1998, when the corporate headquarters moved from Great Neck, New York, to Phoenix. In 2001, Avnet acquired Kent Electronics for stock valued at approximately $600 million, strengthening its component distribution and computer-network installation operations. In 2010, it acquired Bell Microelectronics for approximately $631 million. Richard Hamada succeeded Vallee as chief executive in 2011. Further acquisitions in 2012, including Ascendant Technologies, BrightStar Partners, and BSP Software, expanded Avnet Technology Solutions. The 2016 sale of that operating group to Tech Data was a significant portfolio decision. Avnet received cash and Tech Data shares, while Tech Data gained the technology-distribution business. Later in 2016, Avnet acquired Premier Farnell for approximately £691 million. The transaction reinforced Avnet's presence in online component commerce, engineering resources, and the developer community through the element14 brand. Since then, Avnet has remained focused on connecting component manufacturers with customers throughout the design and production cycle. Its activities include component distribution, embedded computing, development platforms, engineering services, supply-chain management, procurement, logistics, and inventory support. The company serves industrial, automotive, communications, aerospace and defense, healthcare, energy, transportation, and consumer-technology markets. Its business model is based on technical expertise, supplier relationships, inventory availability, and the ability to support customers from early design through manufacturing.

1. 2018Listing moves to Nasdaq

   Avnet changes its primary stock-market listing from the New York Stock Exchange to Nasdaq while retaining the AVT ticker.

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2. 2016Premier Farnell acquisition

   Avnet acquires Premier Farnell, bringing the element14 online commerce and engineering community platform into the group.

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3. 2010Bell Microelectronics acquisition

   Avnet purchases Bell Microelectronics, expanding its technology distribution operations.

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4. 2001Kent Electronics acquisition

   Avnet acquires Kent Electronics, adding component distribution and computer-network installation capabilities.

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5. 1998Headquarters move to Phoenix

   Avnet relocates its corporate headquarters from Great Neck, New York, to Phoenix, Arizona.

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6. 1979Avnet reaches one billion dollars in revenue

   The company reports reaching $1 billion in revenue as it expands semiconductor and computer distribution.

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7. 1973Intel distribution relationship begins

   Avnet becomes Intel's first distributor, strengthening its position in computer and semiconductor distribution.

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8. 1961New York Stock Exchange trading

   Avnet begins trading on the New York Stock Exchange.

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9. 1960First acquisition

   Avnet acquires British Industries Corp., expanding into audio equipment and other product categories.

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10. 1955Avnet is incorporated

    Avnet Electronic Supply Company is incorporated, initially focusing on capacitors, fasteners, and switches.

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11. 1921Charles Avnet starts a radio-parts business

    Charles Avnet begins selling surplus radio parts on the Radio Rows of American port cities.

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B2B technology distribution and design-to-supply-chain enablement

• Electronic componentsComponent distribution

  Avnet distributes a broad range of electronic components, including semiconductors, memory, analog and mixed-signal devices, power-management products, sensors, connectivity parts, connectors, switches, relays, and other electromechanical products. These products are supplied to manufacturers and design organizations rather than marketed mainly as finished consumer goods.

• Embedded solutionsEmbedded computing

  Avnet supports embedded-system development with processors, programmable logic, development boards, computing modules, software-related tools, and reference platforms. These offerings are intended to help engineers evaluate technologies, build prototypes, and transition designs into volume production across industrial, automotive, communications, healthcare, and other sectors.

• Design-chain servicesEngineering services

  Design-chain services connect component selection and engineering development with procurement and manufacturing planning. Avnet provides technical information, evaluation resources, reference designs, development support, and other services intended to reduce the time and complexity involved in bringing an electronic product from concept to production.

• Supply-chain solutionsSupply-chain services

  Avnet's supply-chain offering includes sourcing, inventory management, logistics, fulfillment, and procurement programs for electronic manufacturers. These services are designed to improve component availability and coordinate material flows between suppliers, distributors, contract manufacturers, and original equipment manufacturers.

• element14Online electronics commerce and engineering community

  element14 is associated with the Premier Farnell business acquired by Avnet in 2016. It combines online component commerce with technical content, development resources, discussion communities, and support for engineers, makers, and small or medium-sized design teams.

• 2019Cryptocurrency payment initiative

  Global

  Avnet worked with BitPay to accept cryptocurrency for products and services, presenting an alternative payment method for technology customers and developers.

  Outcome. Avnet reported completing several large cryptocurrency transactions during the first month of the initiative.

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• 2018Move primary listing to NasdaqOther

  Avnet remained a publicly traded company while changing the venue on which its shares were traded.

  What changed. The company moved its stock-market listing from the New York Stock Exchange to Nasdaq and retained the AVT ticker.

  Aftermath. Avnet began Nasdaq trading on May 8, 2018.

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• 2016Sell Technology Solutions to Tech DataM&A

  Avnet reviewed its portfolio while operating both electronic-component distribution and a broader technology-solutions business.

  What changed. It agreed to transfer the Technology Solutions operating group to Tech Data in a cash-and-stock transaction.

  Aftermath. The transaction reduced Avnet's exposure to general technology distribution and concentrated the company more heavily on components, embedded technologies, and design-chain services.

  Transaction value. Approximately US$2.6 billion announced transaction value; approximately US$2.4 billion in cash and 2.785 million Tech Data shares were described in the reference material. (2016)

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• 2016Acquire Premier FarnellM&A

  Avnet sought to strengthen its international component-distribution presence and its access to engineers, developers, and online customers.

  What changed. Avnet acquired Premier Farnell, a British electronics distributor associated with the element14 commerce and engineering community platform.

  Aftermath. The acquisition expanded Avnet's digital commerce, technical-content, and developer-community capabilities.

  Purchase price. Approximately £691 million (2016)

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• 2019Avnet announces cryptocurrency payment capability

  Avnet announced a relationship with BitPay that enabled customers to use cryptocurrency for products and services. The company said it had completed several large cryptocurrency transactions during the first month.

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• 2018Avnet changes its stock-market listing from the NYSE to Nasdaq

  Avnet began trading on Nasdaq under its existing AVT ticker on May 8, 2018.

  Other
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• 2016Avnet acquires Premier Farnell

  Avnet purchased the British electronics distributor Premier Farnell, adding element14's digital commerce, engineering content, and design community capabilities.

  M&A
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• 2016Avnet sells Technology Solutions to Tech Data

  Avnet agreed to sell its Technology Solutions operating group to Tech Data, restructuring the portfolio around electronic components and embedded technology services.

  M&A
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