Avnet, Inc. (AVT: Quote), a distributor of electronic components and computer products, on Monday said it has agreed to acquire Germany's privately-owned IT solutions provider Magirus Group. The financial terms of the deal were not disclosed.
The company expects to close the deal in October, subject to normal regulatory approvals.
Avnet also expects the acquisition to be immediately accretive to earnings and achieve its return on capital goal of 12.5 percent within two years.
Magirus is a value-add distributor of software, systems and related services. It has 400 business and technical professionals that help over 4,500 resellers, system integrators and IT service providers develop and deploy IT infrastructure solutions. The company generated revenue of approximately $530 million in the 2011 calendar year
Following the acquisition, Magirus, a pan-European distributor of data center solutions and services, will be integrated into Avnet Technology Solutions' EMEA business.
Phil Gallagher, president of Avnet Technology Solutions, Global, said, "The acquisition of Magirus will significantly enhance our competitive position in Europe and the Middle East by expanding our suite of solutions in high-growth technologies."
Graeme Watt, president, Avnet Technology Solutions EMEA added, "Magirus is a high quality focused business and represents an excellent expansion to our current operations as it adds complementary product lines across the region while meaningfully increasing our scale in important markets including Germany and France."
Avnet shares closed Friday's regular trading session at $30.86, up $0.96 or 3.21 percent.
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by RTT Staff Writer
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