Electronics Production |
Avnet Completes Acquisition of<br>Magirus Infrastructure Division
Avnet, Inc. announced that it has completed its acquisition of the Enterprise Infrastructure Division of Magirus Group.
The acquired business, which has annual revenues of approximately $500 million, is a value-added distributor of IBM and Hewlett-Packard enterprise computing products in seven European countries and Dubai. The acquisition is expected to meet or exceed the company's stated return-on-capital-employed goal and add approximately $0.08 EPS in calendar 2008. The integration of the acquired business into Avnet's Technology Solutions group in Europe is expected to be essentially complete by June 2008.
Roy Vallee, Avnet's chairman and chief executive officer, stated, "This acquisition positions Avnet Technology Solutions as Europe's largest value-added IT distributor for enterprise solutions with the broadest capabilities in the market. Following completion of the recently announced Acal IT Solutions acquisition, Avnet Technology Solutions will have $2.5 billion of annual revenue in the region and possess unique scale and scope advantages that further enhance Avnet's value proposition to our trading partners. In support of Avnet Technology Solutions' strategy to enable complete solutions, we will continue to pursue value creating acquisitions that expand our customer base and/or broaden our products and services portfolio."
Avnet Technology Solutions has now significantly increased its presence in the two largest European markets, Germany and UK, while expanding its operations in six additional countries. The addition of 140 skilled employees and 1,300 value-added-reseller customers presents additional opportunities for cross selling and materially expands Technology Solutions' role in the European IT distribution channel.
"This move strengthens our position as a pan-European value-added distributor with industry-leading system integration, marketing, financial and technical services," said Dick Borsboom, president of Avnet Technology Solutions EMEA. "With expanded geographic coverage and deep technical resources, we will address a wider range of solutions and accelerate the growth of our trading partners."
