Avnet to acquire Bell Microproducts
By siliconindia | Wednesday, 31 March 2010, 07:07 Hrs
Arizona: Avnet, a distributor of electronics is all set to acquire fellow technology distributor Bell Microproducts for $252 million as Avnet looks to bulk up, to pace up with the rebounding technology sector. The acquisition has been approved by the Boards of Directors of both companies and is subject to the approval of Bell's shareholders as well as customary regulatory approvals. The transaction is expected to close in 60 to 120 days. Founded in 1988, Bell employs over 1,900 employees in 55 offices around the world. In 2009 the company registered sales of approximately $3 billion. It currently expects to generate first quarter 2010 sales of $795 million to $815 million. Both companies said their current quarter sales will be at the high end of their prior expectations. Avnet's Chairman and Chief Executive Roy Vallee said buying Bell will give it increased access to "the fast-growing Latin America market. Bell's position in datacenter products and embedded systems complements Avnet's current strategies and creates opportunities for cross selling." Bell's position as one of the leaders in hard disk drive distribution substantially increases Avnet's exposure to this product segment, which is currently focused on embedded computing.