Arrow Electronics Inc. is diving deeper into the design engineering services market with an agreement to purchase eInfochips, a San Jose-based product engineering firm serving OEMs and semiconductor companies with a range of offerings spread across various segments of the high-tech industry.
The eInfochips transaction is the latest in a series of transformative actions being taken by Arrow as it diversifies operations to offer a broader set of services to chipmakers, OEMs, design engineers, and electronics manufacturing services providers. The top-tier electronics component distributor and IT integrator company has pushed in recent years to become a higher-value partner with its customers many of them exploring opportunities in the digital arena and especially in the market for Internet of Things (IoT).
“Upon close of this acquisition, eInfochips advances our IoT strategy, expands our offerings, and moves us into the rapidly growing IoT services market. As a result, we will deliver complex and connected IoT solutions and technologies across multiple cloud platforms,” said Michael J. Long, chairman, president, and CEO of Arrow, in a statement. “This acquisition adds over 1,500 IoT solution architects, engineers, and software development resources to Arrow’s already leading position in IoT design services.”
Arrow, like some of main competitors, has been expanding operations beyond the lower margin electronic component distribution business. The company has placed greater emphasis on its digital operation and has made numerous acquisitions in recent years to beef up the segment. The company’s strategy appears to be focused on bringing together all of the elements that would make it a one-stop service provider to OEMs, EMS providers and the fast-growing Maker movement.
The acquisition of eInfochips will reinforce the company’s push into the higher-level design engineering market, according to the two companies. eInfochips will greatly boost Arrow’s already robust engineering team while expanding eInfochips’ services into Arrow’s larger customer base.
“Arrow will allow us to leverage synergies between our engineering capabilities and digital transformation offerings with Arrow’s tremendous breadth of electronics and enterprise products and solutions, and digital operations, including in IoT,” said Pratul Shroff, CEO of eInfochips, in a separate statement. “This acquisition, once closed, will expand Arrow’s ‘’sensor-to-sunset’’ capabilities, by combining eInfochips’ Snapbricks IoT framework, as well as by adding eInfochips’ 1,500 IoT solution architects, ASIC and embedded engineers, and software development resources to Arrow’s already leading position in IoT design services.”
eInfochips already services some of Arrow’s customers, giving the two companies opportunity to strengthen and expand existing relationships, according to Matt Anderson, chief digital officer at Arrow. The company’s top customers include OEMs, semiconductor companies and software vendors, including Altera, Bosch, GE, IBM, Microsoft, Teradyne, Toshiba, Qualcomm, Siemens, Synopys and Xilinx.
“Connecting eInfochips’ IoT capabilities and engineers to our eDesign platform will substantially augment the scale of eInfochips’ services, delivered via digital tools, to Arrow’s 125,000 customers,” Anderson said in the statement announcing the transaction.
eInfochips has design offices in Europe, North America, India and Japan. The company has customers across many economic segments, “from retail and consumer, to industrial automation, healthcare, and aerospace,” Arrow said.
Arrow did not disclose the financial terms of the acquisition but said it expects the deal to close later this month.