PHOENIX -- Avnet, Inc. (NYSE:AVT) announced that it has reached a definitive agreement to acquire Ontrack Solutions Pvt. Ltd. (Ontrack) of India. A Mumbai-based systems integrator established in 1993, Ontrack is known in the market as a leader in security, networking, consolidation, virtualization, storage and server solutions. From nine locations throughout India, Ontrack supports customers in a variety of end markets including banking, industrial and manufacturing. The transaction, which is subject to government approval, is expected to close by mid-July 2008. Ontrack will become part of the operations of Avnet Technology Solutions Asia Pacific.
Ontrack markets a portfolio of IT solutions from leading suppliers including IBM and HP, as well as software solutions from VMware, Citrix, DoubleTake, CheckPoint, Nokia, Websense, and RSA. For the fiscal year ended March 31, 2008, Ontracks services revenue was approximately US$13 million. Avnet will leverage Ontracks existing footprint and capabilities to build a leading value-added solutions distribution business throughout India. The transaction is expected to be immediately accretive to earnings and supports Avnet's long-term return on capital goals.
John Paget, global president of Avnet Technology Solutions commented, The opportunity to expand our enterprise IT solutions footprint into the fast growing Indian market enables us to leverage our scale and scope as a global solutions distributor. The acquisition of Ontrack also compliments our existing Computing Components business in India. The skills and experience of the local team provide an excellent platform for us to build on and invest in the fastest growing IT market in Asia which is forecasted to reach $17 billion in 2009.