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Table of Contents
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
2. Acquisitions, divestitures and investments
Fiscal 2009
During the third quarter of fiscal 2009, the Company completed its acquisitions of Abacus Group plc (“Abacus”
)
and Nippon Denso Industry Co. Ltd. (“Nippon Denso”). Abacus was a value-added distributor of computer
components in Europe with sales of approximately £
279 million (approximately $400 million) in its fiscal year ended
September 2008, and was acquired for an all cash price of £0.55 per share which equates to a transaction value of
approximately £97.9 million ($141.6 million) including the assumption of estimated net debt. Abacus is reported as
part of the Electronics Marketing (“EM”) EMEA reporting unit. Nippon Denso was a Tokyo-based, value-added
distributor of electronic components with established design and engineering expertise with annual sales of
JPY16.1 billion (approximately $180 million based upon foreign currency exchange rates at the date of close) for its
fiscal year ended March 31, 2008 and is reported as part of the EM Asia reporting unit. Also in the third quarter of
fiscal 2009, the Company entered into a joint venture with Sanko Holding Group to distribute servers, storage,
workstations and computer components in Turkey. Avnet has more than a 50% controlling interest and, as a result,
the venture is consolidated in the accompanying consolidated financial statements. The joint venture, Avnet
Technology Solutions Sanayi ve Ticaret A.S., is reported as part of the operations of Technology Solutions (“TS”)
EMEA reporting unit.
During the first quarter of fiscal 2009, the Company completed its acquisition of Horizon Technology Group plc
in an all cash transaction for €1.18 per share, or approximately $160.5 million including the assumption of net debt.
Horizon is a leading technical integrator and distributor of information technology products in the UK and Ireland
with sales of €295 million (approximately $400 million) for the twelve months ended June 30, 2008. The acquired
business is reported as part of the TS EMEA reporting unit. The Company also completed two smaller acquisitions in
July 2008, Source Electronics Corporation with annualized revenue of approximately $82 million which is reported
as part of the EM Americas reporting unit, and Ontrack Solutions Pvt. Ltd. with annualized revenue of approximately
$13 million which is reported as part of the TS Asia reporting unit.
During fiscal 2009, the Company recognized a gain on the sale of assets amounting to $14,318,000 pre-tax,
$8,727,000 after tax and $0.06 per share as a result of certain earn-out provisions associated with the prior sale of the
Company’s equity investment in Calence LLC.
Fiscal 2008
On March 31, 2008 (the beginning of the fiscal fourth quarter), the Company acquired UK-based Azzurri
Technology Ltd., a design-in distributor of semiconductor and embedded systems products which had annual
revenues of approximately $100 million. The acquisition is reported as part of the EM EMEA reporting unit.
On December 31, 2007 (the beginning of the fiscal third quarter), the Company acquired YEL Electronics Hong
Kong Ltd., a distributor of interconnect, passive and electromechanical components in Asia. The acquired business,
which had annual revenues of approximately $200 million, is reported as part of the EM Asia reporting unit.
On December 17, 2007, the Company completed its acquisition of the IT Solutions division of Acal plc Ltd. The
Acal IT Solutions division is a leading value-added distributor of storage area networking, secure networking and
electronic document management products and services, with operations in six European countries and had annual
revenues of approximately $200 million. Acal is reported as part of the TS EMEA reporting unit.
On October 8, 2007, the Company completed its acquisition of the European Enterprise Infrastructure division
of value-
added distributor Magirus Group. The division acquired is a distributor of servers, storage systems, software
and services of IBM and Hewlett-Packard to resellers in seven European countries and Dubai and which had annual
revenues of approximately $500 million. The acquisition is reported as part of the TS EMEA reporting unit.
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