Avnet Acquires ROUND2 to Enhance After-Market Services
Right on the heels of Avnet’s acquisition of Nexicore comes its next acquisition, this time of ROUND2 Technologies. Avnet has its sights set on ROUND2 Technologies to help it expand its “reverse logistics capabilities.” Sound similar to the Nexicore acquisition? You’d be right. Here’s the scoop:
Like Nexicore, ROUND2 Technologies will help support Avnet’s goals of expanding reverse logistics capabilities; in other words, electronic equipment repair and recycling, at its most basic. But while Neixcore is a bankruptcy buy (the company was filing for Chapter 11 portection), ROUND2 boasts revenue of $40 million and a number of Fortune 1000 clients. And akin to Nexicore, ROUND2 will be assimilated into Avnet Integrated Resources, which provides the aforementioned after-market services globally.
Avnet plans on building out a “total solution” around these after-market services, and sees ROUND2 as a very profitable acquisition since, according to Avnet’s release, the acquisition is “expected to be immediately accretive to earnings and supports Avnet’s return on capital goal of 12.5 percent.” We’ll be on the lookout for yet more similar acquisitions: Avnet is clearly focused on building out its end-to-end offerings, which could be especially important in an increasingly cloud- and services-based era.