Avnet acquires Melbourne-based ChannelWorx

Distributor bolsters its networking and security capabilities by acquiring 30-strong ChannelWorx.

Avnet is looking to expand its technology competences with a ChannelWorx vendor stable which covers Juniper, Extreme Networks, Ironport, and Avaya alongside software products from Google.

In addition to gaining 300 resellers and systems integrators, the acquisition will bring Avnet new employees with experience in security and networking, alongside an increased presence in the Melbourne area.

Gavin Lawless, general manager of Avnet Technology Solutions Australia, told CRN: “ChannelWorx is a business focused on the networking and security space that plays well into our networking and security business unit. We are talking about a fairly aggressive approach to the market over the next couple of years and this is one of the steps in the process."

Lawless said Avnet’s strategy towards growth, whether it be through organic or acquisitive means, will get more aggressive around the areas of networking, security and storage.

“As our business grows globally we will have a focus on other business units, for instance imaging and printing or document management as they call it. That might take us four, five years to get there, but we will add globally another practise into our business which expands where we are right now,” he said.

Lawless said Avnet’s growth in Australia will be as organic as possible, but the firm will “make acquisitions when it makes sense”.

“We have bought a business which is successful and it has very similar values to Avnet, and a similar go-to-market strategy. We don’t necessarily want to go and change anything right now,” added Lawson. “The ChannelWorx staff will carry as they have been as there is not a lot of consolidation or overlap. We will not being getting rid of a whole lot of staff.”

KP Tang, president of Avnet Technology Solutions in Asia Pacific, stated that the acquisition is a step towards diversifying Avnet’s business in the market: “Adding this strong line-up of networking suppliers from ChannelWorx to our product offerings moves us strategically into emerging and high-growth technologies with incremental cross selling opportunities.

“This acquisition represents the opportunity to gain greater scale and scope in the market and offer greater value to our reseller partners in Australia.”

For a full Q&A with Avnet’s COO Rick Hamada and further local comment from Lawless, see Issue 234 of CRN out 26th November.