Avnet Acquires Artificial Intelligence, IoT Software Company Softweb
Avnet is acquiring Softweb Solutions, a privately held software and Artificial Intelligence (AI) company focused on Internet of Things (IoT) applications and systems. Financial terms were not disclosed.
Softweb has roughly 500 employees across Dallas, Chicago and Ahmedabad, India. The team has delivered more than 1,400 projects to 600 clients since its founding in 2004, Avnet says.
The deal, which is expected to close sometime this month, is designed to accelerate Avnet’s end-to-end IoT solutions effort. The initiative focuses on rapid design, development, and deployment capabilities for partners.
Avnet itself has undergone quite a business transformation since selling its enterprise-oriented technology solutions business to Tech Data in 2017.
Avnet now positions itself as a global technology solutions provider with design, product, marketing and supply chain expertise.
The business transformation appears to be proceeding well. Avnet’s Q1 fiscal 2019 sales rose 9.2 percent to $5.09 billion, and net income was $83.7 million — up sharply from $58 million in Q1 2018.
Avnet Acquires Softweb: Executive Perspectives
Describing the Softweb acquisition, Avnet CEO Bill Amelio said:
“By capitalizing 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. 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.”
Added Softweb CEO Ripal Vyas:
“We greatly value our existing business partnership with Avnet, and are excited to officially join the Avnet team. We are pleased that Avnet sees the immense value of our AI and software technology services and solutions, and we look forward to leveraging Avnet’s vast infrastructure, resources and expertise as a global technology solutions leader that enhances customers’ competitiveness and solves today’s business challenges.”