2013 was just two-days old when Avnet Inc. of Phoenix added to its services business by acquiring San Jose, Calif.-based TSSLink, a privately-held IT professional services organization.
Financial terms of the deal were not disclosed by Avnet, but the company did say TSSLink would support the company’s strategic expansion into services as well as rounding out its IT solutions business for channel partners.
Avnet was busy in 2012 making 13 acquisitions in total. Only seven of those companies were for Avnet Technology Solutions. They are: Canvas Systems, Ascendant Technology, Pepperweed Consulting, BSP Software, BrightStar Partners, Magirus Group in Europe, and Genilogix.
TSSLink was founded in 2004 and in 2011 generated revenue of $10.5 million.
Jeff Bawol, president Avnet Technology Solutions, Americas, said that one of the key component of Avnet solutions distribution strategy is the ability to drive growth for suppliers and value-added resellers in markets where demand is continually increasing, such as storage and virtualization. And, TSSLink does focus on those two areas along with customer care services, technical support, consulting, outsourcing, field installation, and end-user training services.
According to Avnet, TSSLink will be integrated into Avnet Technology Solutions’ services organization in the Americas.
TSSLink will also be able to bolster Avnet’s services such as order management, configuration, implementation, IT audit, compliance, disaster recovery and business continuity planning.
Tony Vottima, senior vice president, Avnet Technology Solutions, Americas services organization, said the services TSSLink delivers are integral components of every business’ operations. By providing these services, Avnet will be able to support business partners throughout the entire IT lifecycle which in turn enables them to focus on their core competencies and achieve their growth goals.
This acquisition is expected to be immediately accretive to earnings and supports Avnet’s return on capital goal of 12.5 per cent.