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Electronics Production | July 08, 2010

Avnet completes acquisition of Bell Microproducts

Avnet has completed its acquisition of Bell Microproducts in an all cash merger for USD7.00 per share, which equates to an equity value of approximately USD 252 million and a transaction value of approximately USD 631 million, assuming a net debt position for Bell Micro of USD 379 million at face value as of March 31, 2010.
The acquisition was approved by Bell Micro shareholders, representing over 98% of the votes cast, and has received all required regulatory approvals. The transaction is expected to be immediately accretive to earnings excluding integration and transaction costs.

Roy Vallee, Avnet's chairman and chief executive officer, commented, "The acquisition of Bell Micro marks an inflection point in Avnet's history as the clear leader in value-added technology distribution. Bell Micro is the largest acquisition in Avnet's history on a revenue basis, and substantially improves our global scale and scope competitiveness. It strengthens our position in the Americas and Europe, and expands our presence in the fast-growing Latin America market."

Bell Micro had sales of approximately USD 3.0 billion in calendar year 2009. With more than 1'900 employees and serves customers through 55 offices in the United States, Canada, Europe and Latin America. In calendar year 2009, revenues from North America, EMEA and Latin America were 42%, 41% and 17% respectively.

Rick Hamada, Avnet's president and chief operating officer, stated, "Bell Micro's relationships with key hardware, software and services suppliers, further develops Avnet's product portfolio and technical expertise. Additionally, Bell Micro enhances our value added solutions for the data center and enables us to consolidate our presence in the embedded market, adding to our critical mass and momentum as a leader in embedded technology. With strong customer and supplier relationships, we look forward to enjoying the benefits of the cross-selling opportunities that the merger with Bell Micro brings to Avnet."

Bell Micro's Latin America and EMEA businesses, as well as its North American data center business, will be integrated into Avnet Technology Solutions. Bell Micro's North American embedded business, including embedded components like hard disk drives, will be integrated into Avnet Electronics Marketing. Avnet intends to explore strategic alternatives for the single tier reseller business, which had sales of approximately USD 450 million in calendar year 2009.
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