Avnet acquires IoT software company Softweb
December 18, 2018
Avnet is to acquire Softweb Solutions, a Texas-based software and artificial intelligence (AI) company that delivers software for IoT applications and systems designed to increase efficiency, speed time to market and help businesses transform.
Building on Avnet and Softweb’s track record for bringing IoT products to market, this announcement formalises an element of Avnet’s overall strategy. The integration of Softweb’s AI software for IoT applications, along with its data services and digital process capabilities, provides Avnet with a rapid design, development and deployment capability that enhances its end-to-end ecosystem and provides for new and recurring, margin-enhancing revenue opportunities.
“By capitalising on our longstanding partnership with Softweb, we are adding new capabilities to Avnet’s already robust ecosystem, combining the power of their software expertise with the strength of our end-to-end hardware design-to-deploy ecosystem,” said Bill Amelio, chief executive officer of Arizona-based Avnet. “Softweb’s formidable IoT and data platforms, plus their expertise in AI, data advisory and digital development services, will enable us to bring even greater value to our customers as a single partner resource while accelerating Avnet’s growth.”
Softweb has approximately 500 employees who are located in Dallas, Chicago and Ahmedabad, India. The Softweb team has delivered more than 1400 projects to 600 clients since its founding in 2004.
“We greatly value our existing business partnership with Avnet, and are excited to officially join the Avnet team,” said Ripal Vyas, CEO and owner of Softweb Solutions. “We are pleased that Avnet sees the immense value of our AI and software technology services, and we look forward to leveraging Avnet’s vast infrastructure, resources and expertise as a global technology leader that enhances customers’ competitiveness and solves today’s business challenges.”
The transaction is expected to close by the end of this year. Terms of the agreement were not disclosed. The acquisition will be immediately accretive to adjusted EPS. Softweb is expected to accelerate Avnet’s IoT efforts in addition to contributing $0.05 to $0.10 in adjusted EPS by 2021.