Bell Microproducts to Acquire Assets 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)--Oct. 5, 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 signed a letter of intent to purchase the assets 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. 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. Tenex's headquarters are located in Toronto with additional locations in Montreal, Ottawa and Vancouver. Tenex reported $35 million US in revenues in 1997. Major Tenex product lines include Seagate, Western Digital, ADIC and Digital Equipment Storageworks. "In its role as the only major Canadian distributor that specializes in storage products, Tenex Data has a strong presence with the reseller and integrator markets," said Don Bell, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Bell Microproducts. "We intend to continue Tenex's successful strategy of differentiation through offering technical expertise and other value-added services A value-added service (VAS) is a telecommunications industry term for non-core services or, in short, all services beyond standard voice calls and fax transmissions. to resellers. Tenex Data and Bell Micro have similar strategies and our product lines are complementary. Several of our major supplier partners are shared by both companies." Mr. Bell continued, "Bell Microproducts and Tenex together offer the industry's most complete line of mass storage components and subsystems, as well as value added services. This concentration on data storage products is unique and complementary. We believe this combination will offer significant benefits to our customers, supplier partners and employees. "Tenex will bring a valued customer base to our company and will offer, among other products, our BellStor proprietary line of memory products to its Canadian customers. We are pleased to enter the Canadian market with such a prestigious organization," he said. The acquisition is subject to final negotiation of the definitive agreements and satisfactory completion of due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. . 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. This press release contains forward-looking statements 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 . Conclusion of the acquisition is subject to a number of risks and uncertainties including finalization of the definitive agreements and satisfactory completion of due diligence. Whether the acquisition is accretive to earnings will depend upon review of financial information of Tenex Data and the retention of the management team will depend upon other things, on reaching satisfactory employment arrangements with this management group. |
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