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Nexicore Services agrees to sell to Avnet
Nexicore Services, LLC has entered into an agreement to sell substantially all the assets of Nexicore Services, LLC and its parent company Hartford Computer Group, Inc. to Avnet, Inc.
Nexicore is a providers of repair and installation services in North America for consumer electronics and computers, operating in three complementary business lines of depot repair, onsite repair and installation, and parts distribution. The assets acquired from Nexicore will be deployed in Avnet Integrated Resources, which provides reverse logistics and after-market services to the global technology industry, and Nexicore's approximately 500 employees will be offered positions within Avnet Integrated Resources.
In connection with the transaction, Nexicore voluntarily initiated Chapter 11 proceedings in the U.S. Bankruptcy Court in Chicago today and will seek Bankruptcy Court approval of the asset sale to Avnet under Section 363 of the U.S. Bankruptcy Code.
In announcing this agreement, Brian Mittman, President and CEO of Nexicore Services, said: "For the last five years, Nexicore has had strong financial performance and has operated profitably, despite being constrained by an over-leveraged capital structure. We believe a transaction with Avnet will be highly strategic to both companies, enabling us to expand the services we provide to our top-tier customer base, while pursuing significant growth opportunities with Avnet. It is important to emphasize that Nexicore's customers and operations will not be adversely affected by the bankruptcy process, and we do not envision any changes to our senior management. Upon completion of a transaction, Nexicore will become part of a much stronger and better capitalized company."
