Leading electronic parts distributor Arrow Electronics, Inc. (ARW) entered into a distribution agreement with Exosite, a machine-to-machine (M2M) application and cloud computing software company.
The financial terms of the agreement were not disclosed.
The agreement allows Arrow customers to access Exosite’s cloud-based data platform for M2M applications, which provides data acquisition, back-haul and storage capabilities, and monitors and manages connected devices.
Arrow recently signed a global distribution agreement with Samsung Electro-Mechanics.
According to the agreement, Arrow will provide distribution and design-in services for Samsung Electro-Mechanics on a worldwide basis, excluding Korea. The distribution agreement includes Samsung’s broad product offering in the areas of capacitors, resistors, inductors and crystals.
Earlier, Arrow had completed the acquisition of RF, Wireless and Power Division of Richardson Electronics Ltd. (RELL) for $210 million.
Richardson RFPD has a line card of more than 80 leading RF and wireless component manufacturers. The company caters to manufacturers of RF power transistors, passive and connector products, low-power components, amplifiers and digital broadcast components.
Richardson RFPD generated $350 million of sales in fiscal 2010. The transaction is expected to increase earnings by 10 to 20 cents per share in the first full year of operations.
The acquisition will enable Arrow to expand its portfolio of value-added services with a global presence in the wireless and power conversion markets, having superior growth exposure to the Asia-Pacific market.
Arrow Electronics has chalked out a plan for growth through small and disciplined acquisitions. Electronic components and computer products distribution is a low-margin business and Arrow, being a player in this particular market, heavily depends on acquisitions.
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