Avnet Inc. Plans to Acquire JBA Computer Solutions Division.

PHOENIX--(BUSINESS WIRE)--Jan. 7, 1999--Roy Vallee, chairman and chief executive officer of global electronics distributor Avnet Inc. (NYSE:AVT), Thursday announced that Avnet has entered into a contract to acquire the JBA Computer Solutions Division (CSD) of JBA International Inc., based in Mount Laurel, NJ, a wholly owned North American subsidiary of London-based JBA Holdings Plc.

The closing of the acquisition is scheduled to occur upon the expiration of the waiting period for antitrust review. JBA CSD will join Avnet's Computer Marketing Group (CMG). JBA CSD sales for the year ended Dec. 31, 1998 are estimated to be $120 million, up from $80 million for 1997.

According to Vallee, "JBA CSD, with three North American locations and approximately 100 employees, will now operate as a business unit within CMG to serve value-added resellers in the IBM midrange market space. We will combine key strengths from our Hall-Mark division with those of JBA CSD to become the highest value provider in the IBM midrange market space."

In the IBM space, Hall-Mark currently excels in RS/6000 solutions, while JBA CSD excels in the AS/400 marketplace, ranking No. 1 in overall customer satisfaction, as reported by IBM's 1998 Business Partner Satisfaction Survey.

Avnet Computer Marketing Group president Rich Ward believes that the two companies' mutual customers will benefit from the combination. "It is unusual to come across an opportunity where the strategic fit is as obvious," he said.

"Each company brings unique strengths and skills that combine to provide customers with recognized core competencies in every critical success area: comprehensive hardware and software solutions, state-of-the art logistics, distribution and electronic support infrastructure, proven marketing and customer satisfaction programs, first-class sales and technical talent, and a solid financial base," Ward added.

"JBA's value-based business model has always been dedicated to helping our solution providers maximize their earnings potential," said JBA CSD President, Alistair Johnson-Clague. "When we join the Avnet CMG team, our combined synergy will result in unsurpassed customer service," he added.

"We are pleased to see two such compatible distributors join forces," said IBM's Denny O'Connel, Hall-Mark Computer Products' global account manager. "Beyond a more robust and balanced product portfolio, the acquisition will bring to the marketplace a company with a keen commitment to delivering value-based solutions anywhere in the world," O'Connel added.

Headquartered in Phoenix, Avnet Inc. is a Fortune 500 company with annual sales exceeding $5.9 billion. With sales in 58 countries, Avnet markets, inventories and adds value to the products of the most prestigious electronic components and computer equipment manufacturers for customers worldwide.