Arrow Electronics, Inc. inked a deal on Monday to acquire immixGroup, Inc., a value-added reseller (VAR) of IT solutions to help companies do business with the federal government.
“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 J. Long, chairman, president, and chief executive officer of Arrow, in a release.
Headquartered in McLean, Virginia, immixGroup supports more than 800 “value- added resellers, solution providers, service providers, and other public sector channel partners with specialized resources to accelerate their government sales,” according to the release.
Arrow Electronics provides products, solutions and services to users of electronic components and enterprise computing solutions. The company also is a supply channel partner for over 100,000 manufacturers and commercial customers in 56 countries.
“With margins shrinking, the combination of Arrow’s size and the immixGroup business-to-government savvy and more channel partners will find them a better place to shop,” said Mark Amtower, a government market expert and host of Amtower Off Center on Federal News Radio.
According to Amtower, immixGroup led the charge in 1997 in re-shaping the business-to-government VAR/distributor model, which many big companies, such as Ingram, techData, Synnex and until now Arrow, didn’t get.
“With Arrow’s size and immixGroup’s contracts, they will attract more of the OEM (original equipment manufacturer) business,” he said. “Ingram, et al, still have limited access to multiple contract vehicles and their ‘contract support’ is second tier.”