Avnet has agreed to acquire Nippon Denso Industry (NDI), a Tokyo-based distributor of electronic components.
The deal will continue Avnet's expansion plans which have focused on European acquisitions in the last 12 months. Most recently buying 
id=ArticleBody>UK-based component distributor Abacus Group in a cash deal worth £42.2m which has been agreed by both companies.
The acquisition by the broadliner is interesting because NDI is described as a distributor with design capabilities focused on a small number of franchised suppliers.
If acquired NDI, with revenues of $170m, will more than double Avnet's components business in Japan.
"This acquisition expands our presence and enhances our competitive position in one of the world's largest markets for electronic components," said Harley Feldberg, global president of Avnet Electronics Marketing.
According to Tom McCartney, president of Avnet EM Japan, the acquisition will add new semiconductor suppliers to Avnet EM Japan's linecard in microcontrollers, DSPs, memory and display, communications and USB products.
NDI was founded by its Chairman, Shozo Kawabata in 1958. Yukio Kawabata serves as President and will continue to serve as a member of the executive management team of Avnet EM Japan. Besides a Shibaura, Tokyo-based headquarters and warehouse, NDI also has five sales offices within Japan, two international sales offices based in Singapore and Hong Kong and an international subsidiary in Shanghai, China.
The transaction which is expected to close by December 29, 2008, should be immediately accretive to earnings and supports Avnet's return on capital goals.