Avnet, Inc. has announced the completion, as of July 3,
2000, of its acquisition of Savoir Technology Group, Inc.,
the leading distributor of IBM mid-range server products in
the Americas, with calendar 1999 revenues of $767 million.
Savoir common stock stockholders will receive 0.11452 of a
share of Avnet common stock for each share of Savoir stock
they own. Savoir series A preferred stockholders will
receive 0.16098 of a share of Avnet common stock for each
preferred share of Savoir stock they own. On May 23, 2000,
the record date for the vote of stockholders of Savoir on
the transaction, there were 13,611,156 shares of Savoir
common stock outstanding. This will result in the issuance
of approximately 1.9 million shares of Avnet common stock.
According to Roy Vallee, Avnet chairman and CEO, "The
addition of Savoir positions Avnet as the number one global
value-added distributor of IBM mid-range computing products.
We're confident that the merger of the two companies will
benefit suppliers, customers and shareholders. I fully
expect the transaction to be accretive to Avnet's earnings
per share in the six-month period following the merger."
Savoir's 600 employees in North America will immediately
begin integrating into Avnet's Computer Marketing and
Applied Computing Groups. Avnet Computer Marketing and
Savoir provide solutions integration, professional services,
technical and configuration support, financing, logistics,
marketing and e-business initiatives to value-added
resellers (VARs), who add value and sell integrated computer
systems to end user customers. Savoir's main products
include IBM AS/400, RS/6000, S/390 and Netfinity servers.
Savoir's IBM distribution business will fold into Hall-Mark
Global Solutions, a division of Avnet Computer Marketing,
based in Tempe, Ariz., which is an industry leading,
value-added distributor of enterprise computing systems and
software, marketing exclusively to the value-added reseller
President and COO of Savoir Joe Mertens has been named
executive vice president/general manager of the combined IBM
Business Unit. He will report to Rick Hamada, president of
Avnet's Hall-Mark Global Solutions.
"The Savoir acquisition is expected to have a positive
impact on our market position," said Andy Bryant, president
of Avnet Computer Marketing. "Savoir has won IBM's
Distributor Leadership Award five years in a row, which
speaks volumes to its commitment to quality service."
Savoir's storage products sector, with approximately $60
million in sales, and its integration business, with about
$15 million in sales, will fall under the umbrella of Avnet
Applied Computing, which markets to original equipment
manufacturers. "Storage technology is a growing market and
we expect to have the number two market share position with
the IBM Technology Group when we add the Savoir business,"
said Ed Kamins, president of Avnet Applied Computing. "We
also expect to transition Savoir's integration customers
into our Applied Computing Solutions business unit, which
will add incremental business without significant additional
overhead, broaden our customer base and strengthen the
bottom line," Kamins added. Jerry Kagele, Savoir vice
president, will also join Avnet as vice president of Applied
Computing Enabling Technologies (ACET), a new business unit
of Avnet Applied Computing, reporting to Kamins. ACET's
focus is on data storage, products and systems.
Phoenix, Arizona-based Avnet, Inc. is one of the world's
largest distributors of semiconductors, interconnect,
passive and electromechanical components and computer
products from leading manufacturers. Serving customers in 60
countries, Avnet markets, inventories and adds value to
these products and provides world-class supply-chain
management and engineering design services. A Fortune 500
company, Avnet's sales exceed $9 billion, with a pro forma
of over $10 billion, including acquisitions closed during
fiscal year 2000. The Company's web site is located at
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