Expands Footprint of Strategic Technologies in EMEA Region
PHOENIX--(BUSINESS WIRE)--
Avnet, Inc. (NYSE:AVT) announced today that it has agreed to acquire the
Magirus Group (Magirus), a leading pan-European distributor of data
center solutions and services. Magirus is a leading value-add
distributor of software, systems and related services encompassing
virtualization, storage management, cloud computing, security,
intelligent networks and information life-cycle management services.
Through its professional services portfolio and knowledge of the IT
sector, Magirus enables business partners to take new technologies to
market in eleven markets throughout Europe and the Middle East. The
transaction, which is subject to normal regulatory approvals, is
expected to close in October 2012.
Phil Gallagher, president of Avnet Technology Solutions, Global,
commented, "The acquisition of Magirus will significantly enhance our
competitive position in Europe and the Middle East by expanding our
suite of solutions in high-growth technologies. Magirus increased its
revenue 20 percent in calendar 2011, delivering powerful, flexible and
cost-effective data center solutions from a breadth of suppliers,
including Cisco, VMware and EMC. We welcome the knowledge and expertise
of their talented management team and staff, who will allow us to
further enhance the value we provide to our customers and suppliers."
Founded in 1981, Magirus has 400 business and technical professionals
that help over 4,500 resellers, system integrators and IT service
providers develop and deploy IT infrastructure solutions that bring
together traditional server, storage and network operations so that
constantly changing business requirements can be supported more
efficiently. Its services span demand generation, pre-sales,
consultancy, training, certification, implementation as well as support
from its pan-European, multi-lingual support center. Magirus generated
revenue of approximately US$530 million in the 2011 calendar year, and
will be integrated into Avnet Technology Solutions' EMEA business.
Graeme Watt, president, Avnet Technology Solutions EMEA added, "Magirus
is a high quality focused business and represents an excellent expansion
to our current operations as it adds complementary product lines across
the region while meaningfully increasing our scale in important markets
including Germany and France. Magirus' position with market-leading
suppliers in high growth technologies will bolster our solutions
practices and create significant cross-selling opportunities in the
combined customer base. Its business model is a strong fit with our
strategy to provide more value-add services, and the combined expertise
of both organizations will enable us to accelerate the success of our
customers and suppliers."
This acquisition is expected to be immediately accretive to earnings and
achieve Avnet's return on capital goal of 12.5% within two years.
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, 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. Except as
required by law, 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 2, 2011, Avnet generated
revenue of $26.5 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 Technology Solutions EMEA
Linda Patterson, +44 (0) 1344 662
091
Marketing Director
linda.patterson@avnet.com
or
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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