Ingram Micro to buy Avad



Ingram Micro (IM) has agreed to buy home electronics integrator Avad.


The deal is worth $200 million, comprising a $120 million up-front payment and a further $80 million, depending on how well the company performs over the next three years.


In response to the news, Credit Suisse First Boston (CSFB) has reiterated an Outperform rating together with a $23 price target on the company.


CSFB commented: "The acquisition of Avad brings IM an established product line and a network of CE installers, positioning Ingram to capture share in a fast-growing segment of IT distribution."


Avad is a privately held alliance of 12 companies employing 280 people throughout the US. In 2004 it reported sales of $200 million.