Strategy in TECH...
CES 2019 is over the hump, closing tomorrow. But the top tech stories are pretty big and pretty clearly defined – and will be quite exciting, when they appear…someday. The top tech stories include – LG’s rollable, bendable OLED displays, Artificial Intelligence (AI), 5G – the next generation wireless tech, 8K TVs, autonomous vehicles – both car and motorcycle, and Apple & Siri strike back.
SnapAV, a leading provider of custom integration brands and products, announced today that it has acquired Volutone, a respected California-based distributor with seven locations throughout California and Nevada. The move expands SnapAV’s local touch points in a key market, a strategy that first emerged with their earlier acquisition of another large regional distributor in March of this year, Chicago’s Allnet Distributing.
As we reported last week, the world learned that the private equity group that owns AVAD has made another deal, acquiring Houston, TX-based WAVE Electronics, another major custom integration distribution company. After an initial ripple of excitement over the deal, most of us went back to our daily lives – looking at this deal as nothing more than just another private equity acquisition. But there may be more here than meets the eye…
Kingswood Capital Management, LLC, a private equity company that describes itself as “an operationally-focused lower-middle market” PE company – and the current owner of AVAD – announced today that it has purchased Houston, TX-based custom integration distributor WAVE Electronics, Inc. and plans to merge it with AVAD to create one total entity. Their announcement says that with this move they “will create the single largest value-added distributor of high-end audio, video, security, and home automation solutions in the consumer electronics industry.”
Many thought they already were the largest distributor.
Vanco has always seemed to be that reliable supplier in the background providing a steady stream of solutions like cables, connectors, and other accessories – not particularly glitzy or exciting, but steady and there. Well all that is about to change I learned when I spoke with Mark Corbin, Vanco’s recently appointed President at CEDIA Expo18 earlier this month. The company has begun a big initiative to become a major player in a category near and dear to my heart…audio.
Savant Systems LLC, one of the leading control and home automation brands in custom integration, has made two significant announcements recently, both sent within just a matter of three weeks between them. First was the announcement of new software tools: Savant Central Management, a new cloud-based management software, and Studio, an iPad-based field configuration tool. This announcement was followed with a second one – Savant is partnering with AVAD, a national custom integration-focused distributor with 20 locations across the U.S.
All the way back in 2012, Onkyo Corp. and Gibson Guitar Corp. came together to partner in what both hoped would become an entity where the whole was greater than the sum of the parts. Just months after their announcement, Onkyo forged ties to another Japanese audio brand, Teac/Tascam – just as Gibson stepped in to buy a majority share of them…and the combined entity began to grow.
Little did they know that just six short years later, Gibson, the investor in Onkyo, would implode into bankruptcy – forced to extricate itself from its Onkyo aspirations. Onkyo was hit as well, losing its Gibson investment – forcing them to reassess their direction. We now learn that Onkyo has sold off its entire European operations to an accessory distributor known as Aqipa GmbH.
High-end audio distributor Rutherford Audio announced this week that its relationship with Thorens, a prominent European turntable manufacturer, has come to an end. As a result of this news, Rutherford is telling dealers they can no longer accept orders on Thorens’ products.
SnapAV announced today that it has acquired Allnet Distributing, the Chicago-based distribution company owned by Wally Whinna, who years ago sold a distribution company to Ingram Micro as part of their acquisition of AVAD. This makes Whinna a two-time winner, having created two distribution companies and selling them off, likely for a handsome profit – this time to industry powerhouse SnapAV.
Chicago, IL-based Allnet Distributing announced recently that it is opening an all-new location in Minneapolis, MN in September. It is the fourth warehouse location, as the custom integration-focused distributor continues to expand its reach throughout the Midwest geographic region.
