Avnet is to takeover UK-based component distributor Abacus Group in a cash deal worth £42.2m which has been agreed by both companies.

Significantly, this is a cash deal and so it has gone through despite the turmoil in the financial markets. “Our financial strength affords us the opportunity to acquire excellent companies like Abacus despite current conditions in the credit markets,” said Roy Vallee, chairman and CEO of Avnet.

US-based Avnet sees growth opportunities in the European components market and this deal supports that.

“This acquisition of Abacus represents an excellent complement to our Electronics Marketing group in EMEA,” said Vallee.

Founded in 1972, Newbury-based Abacus is one of Europe’s larger distributors of electronic components with 39 local offices and five warehouses across 10 European countries and an Asian office and warehouse in Hong Kong. It currently employs approximately 1,000 staff.

Its franchises include some of the industries biggest brands such as Texas Instruments, STMicroelectronics, Toshiba and Tyco.

The offer is conditional, amongst other things, on the receipt of EU merger control clearance.

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