Arrow Electronics Inc. (ARW) recently acquired Sphinx Group Ltd, a value-added distributor of security and networking solutions.
Based in the U.K., Sphinx serves more than 20 security and networking suppliers and over 1,000 resellers across the U.K. Sphinx reported sales of $82.5 million in 2009 and employs more than 100 employees. Management expects the acquisition of Sphinx to boost the company’s strategy of increasing security and networking capabilities while expanding its presence in Europe. The acquisition is expected to be accretive to earnings in the first full year of operations.
Earlier, Arrow Electronics opened a new training facility for its resellers and their customers in Manchester through its business segment, Enterprise Computing Solutions (ECS). In January, the company opened a training center in London. The company will now have five training centers in London. Through these facilities, Arrow ECS provides 21 classrooms across England and serves up to 500 students per month.
Arrow Electronics has also completed its previously announced acquisition of Converge, a leading provider of reverse logistics services. Converge offers a full suite of reverse supply chain solutions that are adopted by top-tier OEMs. Management stated that reverse logistics is at its peak and this acquisition boosts the company’s global capabilities as a supply chain and logistics expert.
Headquartered in Massachusetts, Converge employs 350 employees with offices in Singapore and Amsterdam, including support centers throughout Europe, Asia and the Americas .
Reverse logistics engulfs all operations related to the re-use of products and materials. In other words, reverse logistics helps in diverting goods from their typical final destination to its proper disposal. For most technology companies, customer returns, damaged goods, service depot returns or excess service parts inventory are returned through reverse logistics.
The acquisition is expected to be accretive to earnings by $0.05 to $0.10 per share annually.
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