Under the agreement, Arrow will buy Wyle Components, Wyle Systems and Atlas Services North America. Avnet will gain European-based EBV Elektronik, Atlas Logistic Services Europe and Raab Karcher Electronic Systems (Germany). Schroder will pick up Memec, which includes semiconductor specialists Impact Technologies LLC, Insight Electronics LLC and Unique Technologies LLC. There have been a number of mergers in the distribution business over the past 18 months, but none of this magnitude.

A number of questions come to mind when you think about this deal, such as: What does this mean to the engineering community? Good question. Memec, which includes Impact, Insight and Unique, relies heavily on its sister company Atlas Services for component-fulfillment and supply-chain management services. This gives Insight and its sister companies freedom to focus on demand creation and engineering services. But with Arrow acquiring Atlas, will this disrupt Memec's services to OEM engineers?

Insight's president and chief executive Greg Provenzano doesn't think so. Actually, the acquisition will help the Memec Group, he says. Schroder Ventures is encouraging more investment in designing and integrating intellectual property, even more so than Veba AG was willing to invest, and that's a good thing for the engineering community, Provenzano said.

In addition, Arrow and Schroder/Memec will split the assets and personnel of Atlas Services. Memec will keep its dedicated value-added center and warehouse in Reno, and Wyle's dedicated warehouse in Phoenix will become part of Arrow.

There won't be a change in the services that Memec can provide, but the line offerings will change a little bit, according to Provenzano. The fulfillment side will be totally transparent to the customer and Memec will have a program called Memec United to support global accounts, he said.