Avnet completes acquisition of Sunshine Joint Stock in Vietnam

PHOENIX, USA: Avnet Inc. announced the acquisition of certain assets of Sunshine Joint Stock Company of Vietnam, further expanding its presence and customer base in ASEAN. Founded in 2001, Sunshine is a value add IT distributor providing server, storage and software products to system integrators and resellers throughout Vietnam.

Phil Gallagher, global president of Avnet Technology Solutions, noted that this investment is another component of Avnet's strategy to grow its solutions distribution business in Asia:

He said: “Expanding into a growing market like Vietnam will provide new opportunities to accelerate growth and expand our footprint in ASEAN markets. By building on our global supplier relationships we will be positioned to expand the line card and offer a broader suite of solutions encompassing networking, security and unified communications.” The operations of Sunshine will be integrated into Avnet’s Technology Solutions Asia business.

From its head office in Ho Chi Minh City and sales offices in Hanoi and Danang, Sunshine markets a portfolio of IT infrastructure products from leading vendors including Hewlett Packard, IBM and Lenovo. With over 120 employees and 1,400 customers, Sunshine generated revenue of approximately $33 million in calendar 2008.

KP Tang, president of Avnet Technology Solutions, Asia Pacific, commented that this investment provides a solid foundation to build upon in the growing IT market in Vietnam.

He added: “As a respected local company with talented associates and an extensive customer base, Sunshine provides a foundation that we can leverage to replicate our solutions distribution model and add more value to their VAR partners. The investment enhances our scale and scope in the region and affords both existing and new suppliers additional channels to reach the SMB market.”

The investment is expected to be immediately accretive to earnings and supports Avnet’s return on capital goals.