In September, Texas Instruments announced that it will terminate its distribution agreement with its Asian distribution partner, the Serial Group, on December 31, 2018.
According to the latest news, Serial Group and TI have signed a Business Transition Agreement (BTA). According to the terms of the BTA, TI has agreed that Serial to transfer the distribution business no later than June 30, 2019. The distributor responsible for receiving Serial’s TI distribution business is Arrow Electronics, the world’s second largest electronic component distributor.
According to media reports, Serial will sell customer data to Arrow, and the remaining TI inventory will be processed in three parts: one part will be sold and the other part will be transferred to Arrow, and the remaining stock will be returned to TI.
According to the agreement between Serial and Arrow, during the transition period, the two sides will mainly do the following work:
1. Serial and Arrow will conduct joint customer visits from the date of signing the agreement;
2. Serial will transfer the customer’s existing backlog to Arrow from December 2018 to January 2019;
3. Serial will encourage customers to place new orders to Arrow;
4. Cooperate with TI to ensure the smooth transfer of business.
In response to this matter, the supply chain pointed out that Serial, as an authorized agent of TI, has a certain share in the Asian market, the transfer of this business to Arrow will have a positive effect on Arrow’s sales.