Zilog Inc. today named Pioneer-Standard Electronics Inc. as its exclusive distributor for North America, severing relationships in the region with three existing distributors.
"In taking this bold step, a first in the industry, our goal is to give Zilog customers more support and better service than they have ever had from a distributor," said Curtis J. Crawford, chairman, president, and chief executive of Zilog, Campbell, Calif.
Zilog continues to maintain separate Asian and European distribution agreements. In North America, Zilog has terminated distribution pacts with Arrow Inc., Future Electronics Inc., and Unique Technologies LLC.
"By aligning Pioneer's technical resources and supply-chain expertise with Zilog's production and development strengths, our companies will work together to offer innovative customer solutions," said Arthur Rhein, president and chief operating officer of Pioneer-Standard, Cleveland.
Zilog's focus on "emerging and significant growth markets like the Internet infrastructure, communications, office networks, and smart home appliances, are all areas of focus for Pioneer, and I think the collective partnership is going to see significant acceleration of our combined businesses," said Tom Pitera, president of Pioneer-Standard's Industrial Electronics Division.
Zilog had revenue of $245 million in 1999, about 40% of which was through distribution, with North America as the company's largest region of revenue, said Mike Burger, senior vice president of worldwide sales at Zilog. The company is seeking to move distribution sales to half the company revenue.