INSIGHTS
If Anixter can encourage Tri Ed’s customers to migrate to more advanced and higher priced network equipment, this will provide it with a useful stream of new revenues.
IHS notes on Anixter acquiring Tri-Ed
Date: 2014/08/13
Source: IMS
Anixter announced on 8/13 that it has signed an agreement to acquire Tri-Ed. Tri-Ed is a distributor of video surveillance equipment, access control, intrusion detection, and fire products.
Anixter is already one of the world's largest video surveillance equipment distributors and has been heavily promoting migration from analogue to network equipment. Most of Tri Ed's video surveillance revenues are from analogue equipment. If Anixter can encourage Tri Ed's customers to migrate to more advanced and higher priced network equipment, this will provide it with a useful stream of new revenues.
Supply of video surveillance equipment in the Americas by distributors is highly fragmented. It is served by several large multinationals (e.g. ADI Distribution and Anixter), a number of distributors that have a large share of their local market (e.g. APA in Canada and Inalarm in Mexico), and a multitude of privately-owned, small-to-medium sized distributors. ADI Distribution and Anixter are estimated to have been the only distributors with a share greater than 10% of the market in 2013.