announced today that it has closed the acquisition of 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, open source
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 11 markets
throughout Europe and the Middle East. The company generated revenue of
approximately US$530 million in the 2011 calendar year.
Phil Gallagher, president of Avnet Technology Solutions, Global,
commented, "We are very excited with the addition of Magirus to our
existing resources and footprint in EMEA. We believe we have the
opportunity to create an exciting and, in some cases, unique value-added
distribution offering in the market. Their talented team and key
customer relationships will enhance our competitive position in Europe
and the Middle East. In addition, Magirus' portfolio of services expands
our suite of solutions in high-growth market segments which helps us
satisfy the increasing customer appetite for integrated and virtualized
solutions. Magirus increased its revenue 20% in calendar 2011,
delivering powerful, flexible and cost-effective data center solutions
from a breadth of suppliers, including Cisco, VMware and EMC."
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 will be
integrated into Avnet Technology Solutions' EMEA business.
Graeme Watt, president, Avnet Technology Solutions (TS) EMEA, commented,
"Adding to our portfolio in high-growth technologies while also
strengthening our presence in key geographies is a strategic imperative
to accelerate profitable growth in TS EMEA. The Magirus acquisition is
an excellent fit with our current operations as it adds complementary
product lines across the region, while meaningfully increasing our scale
in important markets. Magirus' position with market-leading suppliers
will bolster our solutions practices and create significant
cross-selling opportunities in the combined customer base. Through this
acquisition, our customers and suppliers will benefit significantly as
the combined expertise of both organizations will enable us to
accelerate their success."
This acquisition is expected to be immediately accretive to earnings and
achieve Avnet's return on capital goal of 12.5% within two years.
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
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.
Avnet, Inc. (NYSE:AVT),
a Fortune 500 company, is one of the largest distributors of
electronic components, computer products and embedded technology serving
customers globally. Avnet accelerates its partners' success by
connecting the world's leading technology suppliers with a broad base of
customers by providing cost-effective, value-added services and
solutions. For the fiscal year ended June 30, 2012, Avnet generated
revenue of $25.7 billion. For more information, visit www.avnet.com.
Visit Avnet's Investor Relations Website at www.ir.avnet.com
or contact us at firstname.lastname@example.org.
Investor Relations Contact:
President, Investor Relations
President, Public Relations
Source: Avnet, Inc.
News Provided by Acquire Media