Ingram Micro Buying AVAD
By Alan Wolf -- TWICE, 7/25/2005
Santa Ana, Calif. — IT distributor Ingram Micro is expanding its reach into the CE and custom install markets by acquiring AVAD, a privately held network of 12 A/V and home automation distributors.
The cash deal, which includes an upfront payment of approximately $120 million along with performance-based earn-out payments of up to $80 million over the next three years, is expected to close later this month.
Ingram said the acquisition will accelerate its consumer electronics initiative, launched early last year, and will make it “the leading distributor” for custom installers and home integrators.
“We view this as an opportunity to further differentiate Ingram Micro and enter a profitable and growing new market,” said Ingram's CEO Greg Spierkel. For AVAD, a $200 million business serving 8,000 dealers from 28 locations, the deal will provide the “resources and capital” to enhance its dealer services and accelerate its expansion into the home builders channel, said AVAD's president and principal founder Bob Gartland, who will continue in that role.
Ingram said it will operate AVAD as a separate business unit under its present management team, and will provide “enhancements” to such back-office operations as finance, human resources and information systems.
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