Arrow Electronics Strikes Deal To Acquire D.C.-Area VAD immixGroup

Distributor Arrow Electronics has struck a deal to acquire immixGroup, a fast-growing Washington D.C.-area distributor and solution provider that will expand Arrow's position in the federal government IT market.

Arrow said the definitive agreement is subject to regulatory approvals, and the distributor expected to complete the acquisition at the beginning of the second quarter of 2015. It did not disclose the price it is paying for immixGroup.

An Arrow spokesman declined to make an executive available for an interview, saying the distributor wouldn't comment beyond a statement announcing the deal.

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ImmixGroup, based in McLean, Va., is a value-added distributor that supports more than 800 VARs, solution providers, service providers and other partners in the public sector.

ImmixGroup was No. 37 on CRN's 2014 Solution Provider 500, up from No. 51 one year earlier. The company's growth is all the more remarkable given the unpredictability of federal government spending and government shutdowns amidst political wrangling over budgets.

"It's a unique market space with unique compliance requirements," president and CEO Art Richer told CRN in a June 2014 interview. Along with its presence in the federal government arena, immixGroup also works with solution providers that sell to state and local governments.

Richer attributed his company's growth to its ability to work closely with channel partners and facilitate their work with their government customers. He also pointed to immixGroup's expertise and technology offerings in such areas as cybersecurity, mobility, Software-as-a-Service applications and big data analytics.

"ImmixGroup shares our strategic focus on solution selling into the higher-value segments of the data center and will bring us an expanded presence in the public sector market," said Michael Long, Arrow president and CEO, in the statement.

Arrow's announcement said immixGroup handles IT products from more than 250 vendors. Richer, in the 2014 interview, said that list includes IBM, Hewlett-Packard, CA Technologies, Brocade Communications, Red Hat Software and Oracle.

In September, immixGroup was named to Inc. Magazine's list of fastest growing private companies in America after posting a three-year sales growth rate of 63 percent.

The acquisition could help pave the way for solution providers who have considered getting into the federal government IT market, but have shied away because of the complex mechanics involved.

"We have had an interest in getting into that area for some time," said Mark Galyardt, executive vice president at Xioss, referring to the federal government market. But he said the Atlanta-based solution provider has found the mechanics "kind of daunting" each time it has looked at what such a move would entail. "That's kind of a specialized space."

Xioss works extensively with Arrow and Galyardt said the immixGroup acquisition could result in a more set process for selling into the government market. "Arrow could make it easier for partners like us to have some support as we get into that space," he said.

Arrow, based in Centennial, Colo., has been on the acquisition path this year. Last month it acquired United Technical Publishing in a move that provides the distributor's channel partners with access to engineering tools and product design services.

Other recent acquisitions include ATM Electronic Corp., a Taiwan-based electronic component distributor with substantial operations in China, and RDC, a technology returns and asset management company in Europe. Arrow has also initiated a tender offer to acquire Data Model AG in a move to add to the distributor's visual solutions capabilities.

PUBLISHED MARCH 2, 2015