On 29 August 2012, Arrow Electronics, a $21 billion global electronic components and computing solutions provider, announced plans to acquire Redemtech, an IT asset disposition (ITAD) vendor with expected 2012 revenue of about $60 million. Subject to the customary regulatory approval process, Arrow expects the deal to close within 60 days of announcement. Financial terms of the deal were not disclosed.
Arrow’s Redemtech acquisition deal further consolidates the ITAD market, splitting it between a few major global players (including Arrow, Sims Recycling Solutions, and OEMs such as IBM, HP and Dell) and numerous smaller regional players.
With Redemtech, Arrow will have acquired all three independent (non-OEM) Leaders identified in Gartner’s November 2011 "Magic Quadrant for North America ITAD," and it has acquired a total of six major ITAD vendors since 2010. Arrow is clearly executing on its strategy to be a major global ITAD provider and to deliver services to all areas of what it calls the “electronics ecosystem.” This ecosystem includes design and production (which is Arrow’s heritage and core business), reverse logistics and end-of-life disposition.
Although this aggressive approach to acquisitions in the ITAD market presents logistic and integration challenges, we believe that in the longer term (two or more years into the future) Arrow will be a major player in global electronics disposition, specifically ITAD.
The Redemtech acquisition gives Arrow:
Challenges for this acquisition will include:
Some documents may not be available as part of your current Gartner subscription.
|Resource Id: 2149115|