Arrow Electronics Acquires the Distribution Business of Seed International

Arrow Electronics Inc announced that the company has signed a definitive agreement pursuant to which Arrow will acquire all of the assets and operations of the distribution business of Seed International Ltd.

Seed is a value-added distributor of embedded products with 14 offices across China. The company is primarily focused on Texas Instruments products, and is well known in China as a strong technical service provider with digital signal processor (DSP) specialization.

"Seed is a highly recognized brand for value-added distribution and engineering. This acquisition brings Arrow an expanded presence in China while strengthening our relationship with a key supplier," said Peter T Kong, President, Arrow Global Components. "This transaction should enhance our market position through increased demand creation activities and greater customer penetration in this fast-growing market."

Seed is headquartered in Beijing, China, and has approximately 200 employees, with 100 in value-added engineering. The company's sales for the latest fiscal year were approximately $90 million. The acquisition is subject to regulatory approval and is expected to close during the third quarter of 2011.

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