New Age Electronics (NAE), one of the industry's largest consumer electronics and IT distributors with $900 million in sales, has agreed to be acquired by SYNNEX Corp. for approximately $54.3 million in cash.
SYNNEX, based here, provides services in IT distribution, supply chain management, contract assembly and business process outsourcing for resellers and original equipment manufacturers (OEMs) worldwide.
The deal, expected to close in April, represents the second major consolidation within the distributor sector in less than a year, following last June's $96 million purchase of DBL by Ingram Micro.
SYNNEX said the acquisition of the privately held business will substantially expand its existing CE product offering by adding complementary consumer and retail products. New Age's manufacturer roster includes Hewlett-Packard, which comprises about 89 percent of its revenue, as well as Panasonic, Sharp, Kodak and Samsung.
SYNNEX is also the corporate parent of NEXCE, a national CE distributor based in Greenville, S.C., that carries such brands as Belkin, Garmin, JVC, Samsung, Sharp and Sony, as well as HP. It is unclear how SYNNEX will leverage the two businesses going forward.
"This acquisition will greatly expand our consumer electronics offering," said SYNNEX president/CEO Robert T. Huang. "We look forward to creating increased value and accelerating the growth of our combined business through synergies, scale and shared resources."
Under terms of the deal, New Age principal and co-founder Lee Perlman will retire at the close of the transaction and his partner Adam Carroll will continue as president. Carroll will report to Peter Larocque, SYNNEX's president of U.S. distribution. Reporting to Carroll will be Fred Towns, sales senior VP, and Gary Palenbaum, product marketing senior VP.