Avnet

Avnet, Inc. is a distributor of electronic components headquartered in Phoenix, Arizona, named after Charles Avnet, who founded the company in 1921. After its start on Manhattan's Radio Row, the company became incorporated in 1955 and began trading on the New York Stock Exchange in 1961. On May 8, 2018 Avnet changed stock markets to Nasdaq,[3] trading under the same ticker, $AVT.

Avnet, Inc.

Type	Public
Traded as	NASDAQ: AVT S&P 400 Component
Industry	Electronics
Founded	1921 (1921) New York City, New York, U.S.
Founder	Charles Avnet
Headquarters	Phoenix, Arizona, U.S.
Key people	Phil Gallagher, CEO [1] Rodney C. Adkins, Chairman Tom Liguori CFO
Revenue	US$19.5 billion (2019)[2]
Operating income	US$365.9 million (2019)[2]
Net income	US$176.3 million (2019)[2]
Total assets	US$8.5 billion (2019)[2]
Total equity	US$4.1 billion (2019)[2]
Number of employees	15,500 (2019)[2]
Website	www.avnet.com

History

1920–1930

In 1921, Charles Avnet, a 33-year-old Russian-Jewish immigrant, began buying surplus radio parts and selling them to the public on the Radio Rows of United States port cities. As radio manufacturing grew, parts distribution took off. In the mid-1920s, when factory-made radios began to replace radio parts, he adjusted his distribution pipeline and began selling parts to manufacturers and dealers. In the mid-1920s, Avnet diversified by branching out into car radio kits and automobile assembly kits. During the Great Depression, he shifted the focus from retailing to wholesaling.[4]

1930–1940

During World War II, Avnet made antennas for the U.S. armed forces. Charles's son, Lester, joined the business at that time.[5] After the war was over, Avnet focused on buying and selling surplus electronic and electrical parts.

1950–1960

In 1955, Avnet Electronic Supply Company was incorporated with a primary business of selling capacitors, fasteners and switches. In 1956, the corporation opened a second connector assembly plant near Los Angeles specifically for the aircraft industry. Three years after it incorporated, the company changed its name to Avnet Electronics Corporation, and went public on the American Stock Exchange the following year.[6]

1960–1970

In 1960, Avnet made its first acquisition, British Industries Corp., an audio equipment company. With this acquisition, it began selling die casting machines, guitars, and television antennas, and earned a spot trading on the New York Stock Exchange. In the mid-1960s, the company briefly owned several record labels including Liberty Records and Blue Note.[7] Avnet acquired guitar manufacturer Guild Musical Instruments in 1965; in that year a Guild Starfire 12 guitar was presented to Beatles legends John Lennon and George Harrison.[8]

Over the course of the decade, Avnet expanded with several acquisitions:

Avnet Electronic Corporation / Avnet, Inc. acquisitions 1960–1970         Hamilton Electro Corporation 1962           Fairmount Motor Products Co, Inc. 1963           Valley Forge Products, Inc. 1964           Guarantee Generator & Armature Co. 1965           Channel Master Corporation 1967           Brownell Inc. 1968           Carol Wire and Cable Corporation 1968           Machiz's Time Electronic Sales[6] 1968

These acquisitions expanded the company into the new fields of semiconductors, relays, and potentiometers.[4] In 1964, the company renamed itself again as Avnet, Incorporated. Founder Charles Avnet died that same year, and his son Lester became president and chairman.

1970–1980

In 1973, Avnet became Intel Corp.'s first distributor, solidifying Avnet's place in the computer business. Together, Avnet and supplier Intel began selling computer peripherals, complete systems, and software. In 1979, Avnet hit $1 billion in revenue for the first time.

In 1979, Lester Avnet died [9] and was succeeded by Simon Sheib as chief executive officer. Sheib, along with Anthony Hamilton, president of the Hamilton Electro Corporation acquisition, combined the two companies to form Hamilton/Avnet, which eventually became Avnet Electronic Marketing Group, led by Hamilton. The combine shifted its strategy during this time to focus on sales, warehouse and stocking facilities, product development, and expanding markets, and became the first distributor of semiconductors, integrated circuits, and microprocessors.[6]

1980–2000

In 1998, Roy Vallee entered as CEO and chairman,[10] the same year that the company relocated its corporate headquarters to Phoenix (from Great Neck, NY).

2010–present

In July 2010, the company purchased Bell Microelectronics for $631 million.[11] In July 2011, CEO Roy Vallee retired, and then-COO Richard Hamada was appointed CEO.

In March 2012 Avnet, Inc. acquired Ascendant Technologies and in October 2012, BrightStar Partners, Inc. and BSP Software LLC. This was done to expand Avnet Technology Solutions.

In September 2016, Tech Data announced that it had entered into an agreement to acquire the Technology Solutions operating group from Avnet, Inc. in a stock and cash transaction valued at approximately US$2.6 billion. Under the terms of the agreement, Avnet received at closing approximately $2.4 billion in cash and 2.785 million shares of Tech Data common stock, representing an approximate 7 percent ownership position in Tech Data.[12] In October 2016, the company purchased British components distributor Premier Farnell for £691M.[13]

In March 2019, Avnet announced that it was working with blockchain payment provider BitPay to accept cryptocurrency as payment for products and services.[14] Avnet stated that it had already closed "several multi-million dollar cryptocurrency transactions" in the first month of accepting Bitcoin.[15]

Leadership history

Chief Executive Officers since the 1970s for Avnet have included:

• Tony Hamilton
• Leon Machiz
• Roy Vallee
• Rick Hamada
• William Amelio[16]
• Phil Gallagher[17]

Notes

1. https://www.businesswire.com/news/home/20200803005785/en/Avnet-Names-Phil-Gallagher-Interim-Chief-Executive#:~:text=Phil%20Gallagher%2C%20Global%20President%20of,our%20suppliers%2C%20customers%20and%20investors.
2. https://sec.report/Document/0000008858-19-000035/
3. "Avnet to switch markets, be listed on the Nasdaq". bizjournals.com. Retrieved June 4, 2018.
4. "Charles Avnet and the Golden Age of Radio". Avnet. Retrieved December 14, 2007.
5. "Avnet's History --Family beginnings". Avnet. Retrieved December 14, 2007.
6. "History of Avnet Inc. – FundingUniverse". fundinguniverse.com. Retrieved April 3, 2017.
7. "Liberty Records". Archived from the original on April 2, 2008. Retrieved March 22, 2008.
8. Novinson, Michael (April 2, 2015). "Behind The Scenes: A Look Inside Avnet's Global Solutions Center". CRN. Retrieved April 3, 2017.
9. https://www.nytimes.com/1979/12/26/archives/obituary-1-no-title.html
10. "Stocks". Bloomberg.com. Retrieved April 3, 2017.
11. "Avnet buys Bell Microproducts for $631 million". Arizona Business and Money. July 7, 2010. Retrieved September 2, 2015.
12. "TECH DATA COMPLETES ACQUISITION OF TECHNOLOGY SOLUTIONS BUSINESS FROM AVNET".
13. "Premier Farnell Acquisition". Premier Farnell. Archived from the original on February 14, 2017. Retrieved February 13, 2017.
14. "Avnet Now Accepts Cryptocurrency Payments". Avnet.com. Retrieved March 20, 2019.
15. "Avnet Leads Industry by Accepting Cryptocurrency". Avnet.com. Retrieved March 20, 2019.
16. Novinson, Michael. "Avnet Changes CEOs: Hamada Out, Ex-Lenovo CEO To Fill In On Interim Basis". CRN. The Channel Company. Retrieved July 11, 2016.
17. https://www.businesswire.com/news/home/20200803005785/en/Avnet-Names-Phil-Gallagher-Interim-Chief-Executive#:~:text=Phil%20Gallagher%2C%20Global%20President%20of,our%20suppliers%2C%20customers%20and%20investors.

External links

• Official website