PHOENIX--(BUSINESS WIRE)--
Avnet, Inc. (NYSE:AVT) announced today that it has acquired Prospect
Technology Corp. (Prospect Technology), an electronic components
distributor with operations in Taiwan. Prospect Technology provides
technical support, module solutions and circuit design support to help
customers expedite product development. Prospect Technology generated
revenue of approximately US$157 million during the 2010 calendar year.
Harley Feldberg, president, Avnet Electronics Marketing Global,
commented, "The combination of Prospect Technology's technical expertise
and Avnet's scale and scope gives us a strong competitive advantage as
we continue to grow profitably in Asia. This transaction complements our
organic growth initiatives by expanding our value proposition to our
customers through enhanced design capabilities and technical expertise
while reinforcing our critical role in supply chain services."
Founded in 1985, Prospect Technology has approximately 70 employees,
serving a broad base of customers in Taiwan and China. Prospect
Technology has differentiated itself in the market by building a strong
engineering team, with a specific focus on battery and power management,
and leveraging that strength and expertise to build strong customer
relationships. Prospect Technology's line card includes Texas
Instruments, LSI and Nuvoton, among others. This acquisition is expected
to be immediately accretive to earnings and achieve Avnet's return on
capital goal of 12.5%.
Stephen Wong, president of Avnet Electronics Marketing, Asia, commented,
"Prospect Technology is a well respected distributor in this region and
brings strong technical skills in battery and power management. The
addition of Prospect Technology's talented employees, combined with the
strength of our existing team, increases our value to customers enabling
us to capitalize on this large and fast growing market."
Forward Looking Statements
This press release contains certain "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
These statements are based on management's current expectations and are
subject to uncertainty and changes in facts and circumstances. The
forward-looking statements herein include statements addressing future
financial and operating results of Avnet and may include words such as
"will," "anticipate," "expect," believe," "intend," and "should," and
other words and terms of similar meaning in connection with any
discussions of future operating or financial performance or business
prospects. Actual results may vary materially from the expectations
contained in the forward-looking statements.
The following factors, among others, could cause actual results to
differ materially from those described in the forward-looking
statements: the Company's ability to retain and grow market share and to
generate additional cash flow, risks associated with any acquisition or
disposition activities, the successful integration of acquired
companies, any significant and unanticipated sales decline, changes in
business conditions and the economy in general, changes in market demand
and pricing pressures, any material changes in the allocation of product
or product rebates by suppliers, allocations of products by suppliers,
other competitive and/or regulatory factors affecting the businesses of
Avnet generally.
More detailed information about these and other factors is set forth in
Avnet's filings with the Securities and Exchange Commission, including
the Company's reports on Form 10-K, Form 10-Q and Form 8-K. Avnet is
under no obligation to update any forward-looking statements, whether as
a result of new information, future events or otherwise.
About Avnet
Avnet, Inc. (NYSE:AVT), a Fortune 500 Company, is one of the
largest distributors of electronic components, computer products and
embedded technology serving customers in more than 70 countries
worldwide. Avnet accelerates its partners' success by connecting the
world's leading technology suppliers with a broad base of more than
100,000 customers by providing cost-effective, value-added services and
solutions. For the fiscal year ended July 3, 2010, Avnet generated
revenue of $19.16 billion. For more information, visit www.avnet.com.
(AVT_IR)
Visit Avnet's Investor Relations Website at www.ir.avnet.com
or contact us at investorrelations@avnet.com.
Avnet, Inc.
Public Relations
Michelle Gorel, +1 480-643-7653
Vice
President, Public Relations
michelle.gorel@avnet.com
or
Investor
Relations
Vincent Keenan, +1 480-643-7053
Vice President,
Investor Relations
Vincent.keenan@avnet.com
Source: Avnet, Inc.
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