Avnet, Inc. (Nasdaq: AVT) announced that it will acquire Softweb Solutions, Inc., a privately held software and Artificial Intelligence (AI) company that delivers innovative software solutions for Internet of Things (IoT) applications and systems designed to increase efficiency, speed time to market, and help businesses transform.
Building on Avnet and Softweb’s track record for bringing IoT solutions to market, today’s announcement formalizes a game-changing element of Avnet’s overall solutions strategy. The integration of Softweb’s best-of-breed AI software for IoT applications, along with its data services and digital process capabilities, provides Avnet with a rapid design, development, and deployment capability that further enhances Avnet’s unique end-to-end ecosystem and provides for new and recurring, margin-enhancing revenue opportunities.
“By capitalizing on our longstanding partnership with Softweb, we are adding new capabilities to Avnet’s already robust ecosystem -- combining the power of their software expertise with the strength of our end-to-end hardware ‘design to deploy’ ecosystem,” said Bill Amelio, Chief Executive Officer, Avnet. “Softweb’s formidable IoT and data platforms, plus their expertise in AI, data advisory and digital development services, will enable us to bring even greater value to our customers as a single partner resource while accelerating Avnet’s growth.”
Softweb Solutions has approximately 500 employees who are located in Dallas, Chicago, and Ahmedabad, India. The Softweb team has delivered more than 1,400 projects to 600 clients since its founding in 2004.
“We greatly value our existing business partnership with Avnet, and are excited to officially join the Avnet team,” said Ripal Vyas, CEO and owner of Softweb Solutions. “We are pleased that Avnet sees the immense value of our AI and software technology services and solutions, and we look forward to leveraging Avnet’s vast infrastructure, resources, and expertise as a global technology solutions leader that enhances customers’ competitiveness and solves today’s business challenges.”
The transaction is expected to close by the end of December 2018. Terms of the agreement were not disclosed. The acquisition will be immediately accretive to Adjusted EPS. Softweb is expected to accelerate Avnet’s IoT efforts in addition to contributing $0.05 - $0.10 in Adjusted EPS by 2021.