Santa Ana, CA–Ingram Micro has signed a definitive agreement to purchase certain net assets of AVAD, the nationwide distributor of home technology solutions.
Ingram Micro is the world’s largest technology distributor, and AVAD is a privately held alliance of 12 companies serving the custom installation channel, and employing 280 people throughout the United States.
“This acquisition accelerates our consumer electronics initiative and provides another key platform for growth,” said Greg Spierkel, chief executive officer, Ingram Micro Inc. “We view this as an opportunity to further differentiate Ingram Micro and enter a profitable and growing new market. Technologies for the home are becoming more complex, often requiring sophisticated experts to install home automation and entertainment. AVAD is one of the only meaningful distributors for custom installers in the consumer electronics and home automation space–it is the far-and-away leader.”
AVAD reported sales of approximately $200 million in 2004. The company serves approximately 8,000 dealers through 28 multi-functional facilities that combine product showrooms, distribution centers, training locations and will-call capabilities under one roof. Its product portfolio includes renowned vendors in the high-end consumer electronics market, such as Fujitsu, Bose, Sharp, Samsung, Niles and Lutron.
“This acquisition is great news for our employees, affiliates, customers and manufacturer partners,” said Bob Gartland, president and principal founder, AVAD. “We’ve been expanding our capabilities and extending our reach across the electronic systems contractor base for many years. We are building a dealer-to-builder program to help connect our customers to the growing new home construction market, and we have led the industry in dealer training and CEDIA certification. Now as a subsidiary of Ingram Micro, we’ll have the resources and the capital to enhance our dealer services and accelerate our expansion plans.”
According to Kevin Murai, president and chief operating officer, Ingram Micro Inc., the company officially launched its consumer electronics initiatives early last year, after recognizing trends pointing to the convergence of consumer and business technologies.
“The lines between home and office are blurring,” said Murai. “Many homes are being built or renovated with centralized electronic systems to combine data, entertainment and everyday conveniences, such as lighting and appliances. AVAD’s customers are on the front lines of the convergence trend, selling and installing everything from home theatre systems to lighting, security and centralized controls. This custom installer market is one of the fastest-growing areas of the estimated $70-billion consumer electronics market in the United States.”