At closing, Mark Fukuda, former chief operating officer for WAVE, will take over as the chief executive officer for the combined new enterprise. Tom Jacoby, who had been serving as AVAD’s chief executive officer, will become chairman of the combined company.
The new company will be headquartered in Houston, TX with an initial objective to combine the best residential AV, proAV, and security brands across all of its North American locations. The new company plans to integrate its dealer services, including tech support, programming services, marketing services, and dealer programs.
The distributors have a combined 32 branch locations in the U.S. and Canada. Kingswood Capital Management, the private equity firm that acquired AVAD two years ago, have now acquired WAVE for an undisclosed amount.
"In bringing together WAVE and AVAD, Kingswood will create the single largest value-added distributor of high-end audio, video, security, and home automation solutions in the consumer electronics industry," Kingwood states in a press release announcing the acquisition.
Both AVAD and WAVE have been growing in recent years, expanding branch locations throughout North America. In June 2017, AVAD announced 11 new branch openings. Six years ago that Houston-based WAVE abandoned its national distribution network, PowerHouse Alliance, to go solo. The group now has 12 branches, mostly in Texas and Louisiana, but also stretching to California, Florida and New Jersey.
WAVE president Mark Fukuda, who joined the company in 2006, will be the new CEO of the merged distribution group. WAVE was founded in 2002. AVAD, formerly a collection of independent regional distributors, was acquired by Ingram Micro in 2005 for more than $120 million.