Avnet Inc to acquire Bell Microproducts for $252 million
29 Mar 2010
Electronics components distributor Avnet Inc today said that it is acquiring Bell Microproducts Inc. for $252 million in cash in order to strengthen its storage and computing solutions business as well as expand in the Latin America market.
The Fortune 500 Avnet, based in Phoenix, Arizona is one of the largest distributors of electronic components, computer products and embedded technology serving more than 100,000 customers in more than 70 countries worldwide and for the fiscal year ended 28 June 2009, reported revenues of $16.23 billion.
.
Avnet will pay Bell Microproducts $7 per share, a premium of 30 per cent to its closing price of $5.38 on Friday and assume $342 million of Bell's debt.
Based in San Jose, California with sales of approximately $3.0 billion in 2009, Bell is a leading value-added distributor of storage and computing technology.
With over 1,900 employees, the company offers a broad suite of integration and support services to OEMs, VARs, system builders and end users through 55 offices in the US, Canada, Europe and Latin America.
Bell, which operates both a distribution and single tier reseller business, offers a portfolio of storage, computing, software and networking products from industry-leading suppliers.
Roy Vallee, chairman and CEO of Avnet said, ''We are very excited about the opportunity to build additional scale and scope in storage and computing solutions as well as increase our presence in the fast-growing Latin America market. Bell's position in data centre products and embedded systems complements Avnet's current strategies and creates opportunities for cross selling.''
''Bell's position as one of the leaders in hard disk drive distribution substantially increases Avnet's exposure to this product segment which is currently focused on embedded computing,'' he added.
