Avnet, Inc., a fortune 500 Company, has entered into an agreement to acquire Nippon Denso Industry Co., Ltd. (NDI) of Japan, for an undisclosed amount.

The acquisition will be completed through Avnet Japanese subsidiary, named ‘Avnet Japan Co., Ltd’.

NDI is a Tokyo-based, value-added distributor of electronic components with established design and engineering expertise. Its first-class engineering service reputation has been established through 50 years of introducing suppliers' leading technologies into customers' end products.

The company had annual revenue of JPY16.1 billion ($170 million) for its fiscal year ended March 31, 2008.

According to an official statement, the transaction, which is expected to close by December 29, 2008, should be immediately accretive to earnings and supports Avnet's return on capital goals.

Avnet, Inc. is one of the largest distributors of electronic components, computer products and embedded technology serving customers in more than 70 countries worldwide.

Market experts believe that with the addition of NDI, Avnet EM will expand more than double its business in Japan.