Avnet Acquires Deeper Footing in Indonesia

Avnet Inc. is gaining deeper footing into distribution channels in Indonesia. Expanding their reach in the ASEAN (Association of South East Asian Nations), they’ve scooped up a few assets from existing companies. Here’s the details…

Avnet’s looking to grow their  IT solutions distribution business, and where better than the constantly growing market of South-East Asia? Since Avent’s been shopping there, they’ve decided on a purchase. Avnet is acquiring certain assets of PT Datamation Purwana Utama and PT Mitra Bisinfo Utama (Datamation) of Indonesia. Datamation, founded in 1990, is a value-add IT distributor with server, storage and software products, along with  enterprise system integrators and a swath of resellers throughout Indonesia.

Phil Gallagher, president, Avnet Technology Solutions, Global had this to say:

“As we increase our exposure to these fast growing markets and build on our global supplier relationships we will accelerate our organic growth rate.”

And they may very well “accelerate” their growth rate, since Datamation has its headquarters in Jakarta and a sales office in Surabaya. Plus, Datamation already had longstanding ties with IT infrastructure products from APC, HP, IBM, Lenovo NetApp and VMware to just name a few. Couple that with 1,400 VARs under their belt, and Datamation was able to generate US$60 million in 2009. So clearly, Avnet had reason to be interested.

KP Tang, president, Avnet Technology Solutions, Asia Pacific noted this, too:

“We will leverage their talented associates and supplier partner relationships to offer a broader suite of products and services to customers in the largest national economy in Southeast Asia.”

Datamation’s operations will become asimilated into Avnet Technology Solutions’ Asia Pacific business with Avnet looking for a quck turnaround on their investment.

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