$23bn distie Arrow acquires Observatory Crest

Giant multinational distributor Arrow Electronics has acquired trans-Tasman distie Observatory Crest.

Robbie Upcroft, general manager of Arrow's commercial IT division, Arrow Enterprise Computing Solutions, said that the deal took effect Wednesday.

"I’ll be working closely with [Observatory Crest directors] Martin Christmas and Jack Sabo over the coming weeks and months on the integration," said Upcroft.

Arrow Electronics declined to disclose the value of the deal.

It is thought that the crossover of vendors attracted Arrow to Observatory Crest. 

Observatory Crest's major accounts include F5 Networks as well as HP's Arcsight, Fortify and TippingPoint brands.

John Hourigan, Arrow's US-based vice president of global communications, told CRN that the ANZ acquisition "further enables Arrow to pursue growth in key geographies" and that Observatory Crest has similarities to its existing operations in other regions.

"Observatory Crest delivers a high-touch, value-added enablement model, consistent with the go-to-market approach seen in Arrow’s broader enterprise computing solutions business in North America, EMEA, and Brazil," said Hourigan.

Hourigan highlighted the acquired company's security credentials. "Observatory Crest’s line-up of leading-edge solutions strengthens Arrow’s momentum toward establishing the industry’s most compelling enterprise security portfolio."

Arrow is one of the largest distributors in the world, with US$21.4 billion in sales and net income of US$399.4 million. It has more than 16,000 employees in 460 locations in 58 countries. It was founded in 1935 and went public in 1961.

By comparison, Ingram Micro turned over $36.3 billion in its most recent financial year.

Arrow's global reach spans more than 460 locations in 58 countries across the US, Europe and Asia Pacific and the company has more than 100,000 OEM, contract manufacturer and commercial customers covering components, enterprise computing, security and virtualisation.

Focus sectors include telecommunications, information systems, transportation, medical, industrial and consumer electronics.

Arrow is also become a standout among those distributors forging cloud marketplaces, with ArrowSphere operational since 2012.

Observatory Crest bill itself as a valued-added distributor with offices in Sydney, Melbourne, Wellington and Auckland and was founded in 2004. Key partners include flash and appliance vendors Pure Storage and Tintri.