MELVILLE, N.Y. -- Arrow Electronics Inc. today announced it will acquire Tekelec Europe, one of the largest distributors in the region not already owned by, or affiliated with, a U.S. electronics reseller.
Headquartered near Paris, Tekelec's 1999 sales were approximately $325 million. An annual ranking of the European market lists Tekelec as the sixth or seventh-largest distributor in a segment led by Arrow, Avnet Inc., and Veba Electronics LLC, according to Europartners, a distribution consulting group based in Herts, England.
Avnet acquired Europe's No. 4 distributor, the SEI Group, earlier this year.
Arrow's $2.5 billion European business, which holds a leading position in the region, will be strengthened in several countries as a result of the Tekelec acquisition, the company said. "Tekelec's engineering-led sales and support structure will complement our existing network in Europe," said Francis M. Scricco, president and chief operating officer of Arrow.
Tekelec and its subsidiaries, which serve most European countries, carry Altera, AMD, Intel, Linear Technology, Siemens/Infineon Technologies, and STMicroelectronics, as well as passive, electromechanical, and connector products from Kemet and Tyco Electronics.
The Tekelec companies "have long-standing relationships with some of the leading names in the business," Scricco said. "We intend to integrate those relationships with ours, which will enable us to add value throughout the European supply chain."
Just prior to the purchase agreement, Arrow created a position to run its European operations, last month naming Arthur H. Baer as the new head of Arrow Europe. Based in Frankfurt, Germany, Baer will oversee Arrow's business units in Northern, Southern, and Central Europe as well as the company's Europe-wide marketing efforts.
Founded in 1958, Tekelec has been an engineering and supply partner to leading OEMs such as Alcatel, Philips, and Siemens, Arrow said.
The transaction, which is subject to customary closing conditions, is expected to be completed before the end of the second quarter and is the latest in a string of European/U.S. distributor alliances.
Among other distribution market leaders in Europe, Eurodis Electron plc has an affiliation with Pioneer-Standard Electronics Inc.; Avnet sold its Allied catalog division to Electrocomponents plc early last year, though it still maintains an alliance with the company; and catalog house Premier Farnell plc is the parent of the Newark Electronics catalog, which also serves the United States.