Avnet, Inc. Announces a Tender Offer for Internix, Inc.
Acquisition of Electronic Components Distributor Expands Supplier and
Customer Partnerships While Strengthening Technological Expertise
Avnet, Inc. announced today that, through a wholly-owned subsidiary, it
has launched a tender offer bid for all outstanding shares of Internix,
Inc. (Internix), a publicly traded company on the Tokyo Stock Exchange
(TSE: 2657), substantially expanding its presence in the Japanese
market. Established in 1970 by founder the late Yoshiharu Fujisawa,
Internix is an electronics components distributor representing both
Japanese and foreign suppliers serving primarily Japanese original
equipment manufacturers. The tender offer has been unanimously approved
by the board of directors of Internix and is expected to be completed by
the end of August 2012.
"This acquisition is another step in our multiyear strategy to expand
our business in the sizeable yet fragmented Japan distribution market,"
commented Harley Feldberg, president, Avnet Electronics Marketing,
Global. "The Internix business will add complementary suppliers and an
experienced engineering design-in team focused on collaborating with
partners to create design chain solutions that are the most suitable for
a given application. These talented technical resources enhance the
breadth of our design chain services offerings in the Japan market. The
combination of the businesses will not only increase our scale and scope
in country but also leverage Electronics Marketing's global logistics
capability as we can provide complete supply chain support to Japanese
OEMs wherever their products are manufactured."
With operations in Japan, Singapore, Hong Kong, the People's Republic of
China and Thailand, Internix distributes active and passive components
from leading suppliers including AKM, Cirrus Logic, Honeywell, Maxim,
Microchip, Microsemi, RICOH and SMSC. With approximately 280 employees,
most with engineering backgrounds, Internix provides sales, design,
support and services to a wide range of OEM customers in Japan and their
operations throughout the region. For the 12 months ended March 2012,
Internix generated revenue of approximately US$260 million.
"This acquisition brings us new suppliers and services, as well as many
significant new customers including virtually all the major Japanese
electronic OEMs, thereby positioning us to accelerate profitable
growth," stated Tom McCartney, president and representative director,
Avnet EM Holdings Japan. "By adding Internix's strength for design chain
services for technologies based on analog integrated circuits,
analog/digital mixed signal integrated circuits, high speed interfaces
and system power management, we can provide complete solutions for our
customers, especially in the telecommunications and networking, image
processing and energy management system segments. We will also enhance
our competitive position, take advantage of cross-selling opportunities
with existing customers and provide global customer support," he added.
Completion of the tender offer requires 66.7% of Internix's outstanding
shares on a fully-diluted basis be tendered and not withdrawn. Avnet has
already received commitments to accept the offer from Internix and its
shareholders representing 16.75% of the issued shares. The acquisition,
which is subject to customary regulatory approvals, is expected to be
immediately accretive to earnings and supports Avnet's return on capital
goal of 12.5%.
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 the Avnet Group in Japan
The Avnet Group in Japan is comprised of two separate selling business
EM Japan Co. Ltd. (AEMJ) and Unidux,
Inc., which are supported by a common back-office support services
company, Avnet EM Holdings (Japan) K. K., a division of Avnet's global
Electronics Marketing group. Both AEMJ and Unidux serve electronic
original equipment manufacturers (EOEMs) and electronic manufacturing
services (EMS) providers, and are focused on distributing electronic
components from their manufacturers' core technologies for their
customers' primary applications and providing associated design-chain
and supply-chain services.
About Avnet Electronics Marketing
Avnet Electronics Marketing is an operating group of Phoenix-based
Avnet, Inc. that serves electronic original equipment manufacturers
(EOEMs) and electronic manufacturing services (EMS) providers in more
than 70 countries, distributing electronic components from leading
manufacturers and providing associated design-chain and supply-chain
services. For the fiscal year ended July 2, 2011, the Avnet Electronics
Marketing operating group had global sales of $15.1 billion of Avnet,
Inc.'s total revenues of $26.5 billion. The group's website is located
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.
Visit Avnet's Investor Relations Website at www.ir.avnet.com
or contact us at email@example.com.
Avnet EM Holdings (Japan) K. K.
Bob Hackett, +81(0)3 5792 7698
& Communications Director
Michelle Gorel, +1 480-643-7653
President, Public Relations
Vincent Keenan, +1 480-643-7053
Source: Avnet, Inc.
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