Electronic parts distributor Avnet Inc. (AVT: 25.35 +0.23 +0.92%) recently completed its acquisition of Bell Microproducts Inc. (BELM: 0.00 N/A N/A) for $7.00 per share or approximately $252 million. The total transaction value was approximately $631 million assuming a net debt position of Bell Micro of $379 million at face value as of March 31, 2010.The transaction is expected to be immediately accretive to earnings, excluding integration and transaction costs.
Bell is a leading value-added distributor of storage and computing technology. The company has over 1900 employees and offers a broad suite of integration and support services to OEMs, VARs, system builders and end-users through 55 offices in the United States, Canada, Europe and Latin America.
Bell is the largest acquisition in the company’s history and is expected to substantially improve Avnet’s global scale and scope competitiveness.
Bell recorded sales of approximately $3.0 billion in 2009. Management targets a return-on-capital of at least 12.5% from this acquisition following the integration, which should take twelve months.
Avnet expects the acquisition to give an opportunity to grow its business in storage and computing solutions along with expanding its presence in the fast-growing Latin American market. Avnet anticipates that Bell ’s relationships with key hardware, software and services suppliers will further develop Avnet’s product portfolio and technical expertise.
Additionally, management stated that Bell’s position in datacenter products and embedded systems complements Avnet’s growth strategies and creates opportunities for cross selling. Avnet currently focuses on embedded computing. With Bell’s leading position in hard disk drive distribution, Avnet will also have exposure to this product segment, which is currently focused on embedded computing.
Avnet also completed its acquisition of the Tallard Technologies companies (”Tallard”), part of Itautec S.A. – Grupo Itautec.
Tallard generated revenues of approximately $250 million in 2009. Tallard will become a part of Technology Solutions and the acquisition will be immediately accretive to earnings.
Tallard provides value-added services in 30 countries throughout Latin America, including Argentina, Brazil, Chile, Columbia, Ecuador, Mexico and Venezuela. Tallard distributes servers, software, peripherals, convergence equipment and enterprise integration services directed toward resellers, solution providers and systems integrators.
The portfolio includes IT infrastructure products from leading vendors, includingInternational Business Machines Corp. (IBM: 127.42 +0.42 +0.33%), Avaya,Apple Inc. (AAPL: 258.92 +0.255 +0.10%), NetApp Inc. (NTAP: 38.95 -0.65 -1.64%) and Novatel Wireless Inc. (NVTL: 5.69 +0.02 +0.35%).The acquisitions of Bell Micro and Tallard will firmly establish Avnet as a leading value-added IT distributor in the fast growing Latin-American region.
No comments:
Post a Comment