Avnet Gains After Inking New Collaboration With IBM

Shares of Avnet, Inc. (NYSE: AVT) were trading higher by nearly 2 percent on Wednesday after the company announced a new collaboration with International Business Machines Corp. (NYSE: IBM).

Avnet stated it will work with IBM to "increase the development and deployment of Internet of Things (IoT) solutions in the U.S., Canada and Europe." By collaborating together, the companies hope to help customers develop IoT solutions built on IBM's Watson IoT platform.

Avnet noted that the collaboration is designed to help its customers capitalize on the opportunities within the IoT market, which is estimated to account for more than $921 billion in technology spending in 2016.

"Developing an IoT solution is incredibly complex and requires deep technical knowledge from a semiconductor level to advanced data analytics running in a data center," said Patrick Zammit, president, Avnet Technology Solutions, Global. "Avnet and IBM joined together to simplify the development cycle at every stage and give our customers the power to unlock the potential of IoT."

"IBM, alongside its vast network of clients and partners, is ushering in a new era of computing, extending the power of cognitive computing to the billions of connected devices, sensors and systems that comprise the Internet of Things," said Harriet Green, general manager, Watson IoT, Education and Commerce, IBM. "Working together, Avnet and IBM can help clients further embrace the full promise of IoT using innovative technologies to uncover hidden patterns in data and act on them, to transform business and society alike."