Bell Microproducts Finalizes Acquisition of Tenex Data.SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--Nov. 23, 1998--Bell Microproducts Inc. (Nasdaq:BELM), a leading value added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. distributor and contract manufacturer of electronic products, today announced it has completed its purchase of Toronto-based Tenex Data, a division of Axidata Inc. Axidata is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Abitibi - Consolidated, Inc. (NYSE NYSE See: New York Stock Exchange :ABY), the world's largest marketer and manufacturer of communications papers. The acquisition will be accounted for as a purchase. Bell expects the acquisition to be accretive to earnings.(a) Tenex Data is a leading Canadian computer products distributor and the only major distributor in Canada focused on the mass storage components and systems market. The division distributes disk, tape and optical drives in addition to other data storage subsystems The part of a computer system that provides the storage. It includes the controller and disk drives. See storage system. including RAID and tape library products. Major Tenex product lines include Seagate, Western Digital, ADIC and Digital Equipment Storageworks. Tenex reported revenues of $35 million US in 1997. Bell Microproducts reported revenues of $450 million for the nine months ended September 30. "We are pleased to announce the finalization of this acquisition, especially given our companies' similar strategies and complementary product lines," said Don Bell, president and chief executive officer of Bell Microproducts. "In conjunction with our purchase last week of Almo's computer products division, we believe we are well positioned throughout 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. for continued growth and an enhanced ability to serve our customers," he said.(a) About Bell Microproducts Inc. Bell Microproducts Inc. is a distributor of high technology products serving the industrial and commercial markets. The Company markets and distributes the products of more than 70 manufacturers of semiconductors, disk drives, tape drives, optical drives, computers, enhancement products and peripherals primarily to original equipment manufacturers (OEMs), value-added resellers A value-added reseller (VAR) is a company that adds some feature(s) to an existing product(s), then resells it (usually to end-users) as an integrated product or complete "turn-key" solution. (VARs) and system integrators nationwide. The Company adds value to its products through a broad range of services including testing, kitting, mass storage subsystem assembly and the integration of complete computer systems. Bell Microproducts, through its Quadrus Division, operates an advanced contract manufacturing facility for printed circuit board assemblies and custom systems assembly. More information on the company is available from the Company's SEC filings or by contacting the company directly. Bell Microproducts' news and product/service information are available at World Wide Web site http://www.bellmicro.com. (a) Designates a forward-looking statement forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Actual results could differ materially from those discussed herein. Factors that could cause or contribute to such differences include, but are not limited to the ability of Bell to retain Tenex customers, product lines and employees and to successfully integrate the acquired operations into Bell's business. |
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