(By Balaseshan) Arrow Electronics Inc. (NYSE:ARW), which serves industrial and commercial customers as a supply chain partner, is expanding its presence in high-margin electronics asset disposition market with a deal to buy Redemtech Inc.
"The acquisition of Redemtech further strengthens our industry-leading position in the electronics asset disposition (EAD) market and strategically expands our footprint and capabilities in this fast-growing market," said Paul Reilly, chief financial officer of Arrow Electronics.
Headquartered in Columbus, Ohio, Redemtech has about 400 employees. Sales in 2012 are expected to total about $60 million. This acquisition is subject to the receipt of customary regulatory approvals and is expected to close in the next 60 days.
Redemtech, which is a subsidiary of Micro Electronics Inc., offers a comprehensive array of EAD services including data removal, data security, refurbishment, and remarketing of electronic assets, while ensuring compliance with local and national data security and environmental regulations.
Redemtech has locations across the United States and the company's customers span a variety of end markets including financial services, consumer, and government.
Arrow Electronics is a provider of products, services and solutions to industrial and commercial users of electronic components and enterprise computing solutions.
Arrow Electronics offers both a spectrum of products and a range of services and solutions, including materials planning, new product design services, programming and assembly services, inventory management, reverse logistics, EAD and a variety of online supply chain tools.
ARW closed Tuesday's regular session at $36.58. The stock has been trading between $25.71 and $43.39 for the past 52 weeks.