Arrow Acquires Intechra - Analyst Blog

Electronics parts distributor Arrow Electronics, Inc. (ARW) recently announced that it would acquire Intechra. Headquartered in Jackson, Mississippi, Intechra provides comprehensive end-to-end IT asset disposition services.

Intechra's services include legislative compliance, data security and destruction, risk management, redeployment, remarketing, lease return, logistics management, and environmentally responsible recycling of all types of information technology. Intechra provides fully customized information technology asset disposition (ITAD) services to many Fortune 1000 customers throughout the world.

Employing approximately 300 employees, Intechra generated sales of $75 million in the most recent fiscal year. The transaction, expected to close by the end of December, is expected to become accretive to earnings in the first full year of operations by 3 cents – 5 cents. 

Management at Arrow believes that the addition of Intechra is in sync with the company's strategy to provide comprehensive services across the entire product lifecycle for its suppliers and customers.

Earlier, Arrow signed a global distribution agreement with Anaren, Inc., which supplies microwave and RF technology for aerospace and defense, wireless infrastructure and consumer electronics applications. Under the distribution agreement, Arrow's global customer base will now have access to Anaren's Integrated Radio (AIR) modules.

These modules incorporate Texas Instruments' (TI) low-power RF technology and are used for industrial control, building automation, low-power sensor networks, lighting, and smart-grid equipment and appliances, among others. The addition of Anaren will enable Arrow to offer an RF solution focused on Texas Instruments. Arrow can now offer a plug-and-play option to customers looking for a simple, low-cost, module based on TI's low-power RF radio chipsets.

On the third quarter conference call, Arrow stated that its financial strength will help it acquire businesses that complement its existing businesses, increase its scale in fast growing geographies and expand Arrow's presence in attractive growth markets.

 
ARROW ELECTRONI (ARW): Free Stock Analysis Report
 
TELECOM ITA-ADR (TI): Free Stock Analysis Report
 
Zacks Investment Research