Avnet Completes Acquisition of Savoir Technology Group Inc.Business Editors PHOENIX--(BUSINESS WIRE)--July 10, 2000 Avnet Inc. (NYSE NYSE See: New York Stock Exchange : AVT AVT avian arginine vasotocin. See vasotocin. ) Monday announced the completion, as of July 3, 2000, of its acquisition of Savoir Technology Group Inc., the leading distributor of IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) mid-range server products in the Americas, with calendar 1999 revenues of $767 million. Savoir common stock stockholders will receive 0.11452 of a share of Avnet common stock for each share of Savoir stock they own. Savoir series A preferred stockholders will receive 0.16098 of a share of Avnet common stock for each preferred share of Savoir stock they own. On May 23, 2000, the record date for the vote of stockholders of Savoir on the transaction, there were 13,611,156 shares of Savoir common stock outstanding. This will result in the issuance of approximately 1.9 million shares of Avnet common stock. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Roy Vallee, Avnet chairman and chief executive officer, "The addition of Savoir positions Avnet as the number one global value-added distributor of IBM mid-range computing products. We're confident that the merger of the two companies will benefit suppliers, customers and shareholders. "I fully expect the transaction to be accretive to Avnet's earnings per share in the six-month period following the merger." Savoir's 600 employees in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. will immediately begin integrating into Avnet's Computer Marketing and Applied Computing Groups. Avnet Computer Marketing and Savoir provide solutions integration, professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. , technical and configuration support, financing, logistics, marketing and e-business initiatives to value-added resellers (VARs), who add value and sell integrated computer systems to end user customers. Savoir's main products include IBM AS/400, RS/6000, S/390 and Netfinity servers. Savoir's IBM distribution business will fold into Hall-Mark Global Solutions, a division of Avnet Computer Marketing, based in Tempe, Ariz., which is an industry leading, value-added distributor of enterprise computing Refers to information technology in the larger company. See enterprise data and enterprise networking. systems and software, marketing exclusively to the value-added reseller channel. President and COO of Savoir Joe Mertens has been named executive vice president/general manager of the combined IBM Business Unit. He will report to Rick Hamada, president of Avnet's Hall-Mark Global Solutions. "The Savoir acquisition is expected to have a positive impact on our market position," said Andy Bryant, president of Avnet Computer Marketing. "Savoir has won IBM's Distributor Leadership Award five years in a row, which speaks volumes to its commitment to quality service." Savoir's storage products sector, with approximately $60 million in sales, and its integration business, with about $15 million in sales, will fall under the umbrella of Avnet Applied Computing, which markets to original equipment manufacturers. "Storage technology is a growing market and we expect to have the number two market share position with the IBM Technology Group when we add the Savoir business," said Ed Kamins, president of Avnet Applied Computing. "We also expect to transition Savoir's integration customers into our Applied Computing Solutions business unit, which will add incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. business without significant additional overhead, broaden our customer base and strengthen the bottom line," Kamins added. Jerry Kagele, Savoir vice president, will also join Avnet as vice president of Applied Computing Enabling Technologies (ACET ACET AIDS Care Education and Training ACET Advisory Council for the Elimination of Tuberculosis (CDC) ACET Association for Compensatory Educators of Texas ACET Advisory Committee on Electronics and Telecommunications ), a new business unit of Avnet Applied Computing, reporting to Kamins. ACET's focus is on data storage, products and systems. Phoenix-based Avnet Inc. is one of the world's largest distributors of semiconductors, interconnect, passive and electromechanical The use of electricity to run moving parts. Disk drives, printers and motors are examples. Electromechanical systems must be designed for the eventual deterioration of moving components that wear over time. The first TVs were electromechanical systems (see video/TV history). components and computer products from leading manufacturers. Serving customers in 60 countries, Avnet markets, inventories and adds value to these products and provides world-class supply-chain management and engineering design services. A Fortune 500 company, Avnet's sales exceed $9 billion, with a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma of over $10 billion, including acquisitions closed during fiscal year 2000. The company's web site is located at www.avnet.com |
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