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Electronics Production | July 19, 2007

Avnet to Acquire Magirus Enterprise Infrastructure Division

Avnet, Inc. announced today that it has entered into a definitive agreement to acquire the European Enterprise Infrastructure Division of distributor Magirus Group.
With annual revenues of approximately $500 million, the acquired business will be integrated into the European operations of Avnet Technology Solutions (TS), the IT distribution group of Avnet, Inc. The agreement covers the distribution of servers, storage systems, software and services of IBM and Hewlett-Packard to resellers in seven European countries and Dubai. With this transaction, Magirus is exiting the IBM and HP enterprise business and will in the future concentrate on building other segments of its business.

Subject to customary regulatory approval, the transaction is expected to close in October 2007 and the business integration is expected to be complete by June 2008. This acquisition brings Avnet approximately 140 talented employees responsible for marketing and sales in Austria, Denmark, Germany, Italy, Sweden, Switzerland, the United Kingdom and Dubai, along with 1300 established value-added reseller customers. The transaction is expected to meet the company's stated return-on-capital-employed goal and should be accretive to Avnet's earnings per share by roughly 8 cents in calendar 2008.

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