BREAKING NEWS
Houston, TX-based WAVE Electronics, one of the nation’s largest independent distributors for the custom integration industry, announced today that it has acquired KOA Electronics Distribution, itself a leading CI distributor based in Panorama City, CA. This merger creates a mega-distribution business spanning multiple locations in multiple states.
Learn more about this WAVE & KOA acquisition
Of course, Strata-gee readers may recall that I’ve been following WAVE for several years now. Founded in Houston, TX in 2002, WAVE was an early adopter of the concept of value-added distribution for a value-added custom integration industry.
Even though there was hardly a dearth of distributors out there, WAVE seemed to have a unique formula that earned them the support of more and more integrators and dealers throughout – first the state of Texas – and then throughout the broader Southwest region as the company had an impressive rate of growth. Founder Gary Wermuth was aggressive and innovative and found ways to create popular CI-focused programs, stock all the right brands, and create then-unheard-of services that better met the needs of integrators.
Deal Makes WAVE a Significant Player in Southern and Western Regions
Wermuth was also savvy at bringing in smart people and built a team that added even more fuel to the growth of the organization. One of its biggest innovations was to create its own brand of security and other electronic gear that dealers could source directly through WAVE rather than seek out other security-focused distributors. These company-owned brands augmented a rockstar list of popular CI brands that met just about every need of Integrators.
Adding their own brands of select gear was a smart play, and thanks to the company’s savvy team, they designed great products that performed well against other national brands and in some cases better met the needs of integrators who were getting more and more involved in IP-connected camera-based security enhancements to their system installation.
WAVE – More Reach & More Impact
This deal looks to dramatically expand WAVE’s impact and reach with more revenues from more regions served. Currently, WAVE has 9 locations, while KOA has 7 warehouses – taking WAVE to a muscular 16 warehouses in total.
I’ve been very impressed with the KOA team over the years and the growth they have accomplished in such a short time. I’m very excited to have our teams partner together to expand our overall US footprint to 16 locations. This expansion marks a significant chapter in our 21-year history and will definitely open up opportunities for both companies. The value creation for both WAVE Electronics and KOA is the synergistic combining of resilient cultures, exceptional leadership, and high value long-term vendor partners. Our goal remains to focus on the needs of our customers and continue our commitment to offer the best-in-class products and value services WAVE Electronics is known for.
Mark Fukuda, WAVE Electronics CEO
16 Warehouses in 6 States
Not only that, but pre-acquisition WAVE served Texas (5 locations), Louisana (2 locations), Arizona (1 location), and Florida (1 location). With this acquisition of KOA, it now adds California (6 locations), and Nevada (1 location).
Need I point out that California is one of the top four markets for custom integration in the United States? With this acquisition, WAVE now has a solid 6-location beachhead in a huge market. Strategically, this makes so much sense, and I remember that several years ago Gary Wermuth told me that entering California was a long-term goal for the company. While Gary is now retired, the goal was achieved!
WAVE has done an amazing job growing their business and developing their brands. I’m anxious for my team to tap into their vast resources and experience for the benefit of our dealers.
Anton Tomassian, KOA Electronics Distribution CEO
Don’t Think Campgrounds, Think Accessories
When you hear the name KOA, you might be tempted to envision a national network of campgrounds (Kampgrounds of America). But you would be wrong. In this case, you should be thinking of accessories, because when CEO Anton Tomassian founded the company, it was known as the King of Accessories. Of course, the company has dramatically expanded its categories of offerings since then, and it is now a full-service CI distributor.
According to WAVE, the plan is for all KOA Electronics Distribution locations to retain the KOA name, and Anton Tomassian will also retain his title as CEO of KOA.
A Culture Where Everyone Wins
KOA has had great success building market share, adding vendors that bring value to the dealer base, and most importantly creating a culture where everyone wants to win. WAVE Electronics is looking forward to assisting the KOA team with value adds that generate revenue while driving dealer retention and growth
Bryan Stewart, WAVE Chief Sales Officer
The deal was financed by Altamont Capital Partners. Terms were not disclosed.
To see more on KOA Electronics Distributors, visit koaedi.com.
Learn all about WAVE at wave-electronics.com.
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