Avnet, Inc. Announces Agreement to Acquire Pinnacle Data Systems, Inc.
Expanding its reverse logistics capabilities
Avnet, Inc. (NYSE:AVT) announced today that it has entered into a
definitive agreement to acquire Pinnacle Data Systems, Inc. ("PDSi") in
an all-cash merger for $2.40 per share, which equates to an equity value
of approximately $22 million as of September 30, 2011. The acquisition
has been approved by the Boards of Directors of both companies, and is
subject to the approval of PDSi's shareholders, as well as customary
closing conditions. The transaction is expected to close in 60 to 90
Founded in 1989, PDSi is a leading provider of application-specific
hardware and global support solutions for the world's largest OEMs. For
the calendar year 2010, PDSi generated revenue of approximately US$29
million. PDSi will become part of Avnet Integrated Resources, which
provides reverse logistics and after-market services to the global
"This acquisition builds on our commitment to expand into adjacent
businesses and puts in place a third and critical element in our new
after-market services business to benefit industrial customers,
consumers and the environment," stated Steve Church, President, Avnet
Integrated Resources. "PDSi's talented employees expand the breadth of
our expertise in this rapidly growing industry. With 22 years of
experience in repair, refurbishment, recycling and responsible
disposition of IT products, PDSi joins Avnet's two other lifecycle
management operations that specialize in cable TV equipment repair and
cell phone repair, in serving the electronics reverse logistics
From facilities in Ohio, Singapore and the Netherlands, PDSi provides
services and products for the telecom, imaging, defense/aerospace,
medical, semiconductor, industrial automation and IT markets. PDSi
provides a variety of engineering and manufacturing services for global
OEMs requiring custom product design, system integration, repair
programs, warranty management and specialized production capabilities.
In addition to service offerings, PDSi's product capabilities range from
board-level designs to globally certified, fully integrated systems. The
investment is expected to be immediately accretive to earnings and
supports Avnet's return on capital goal of 12.5%.
Avnet, Inc. (NYSE:AVT), a Fortune 500 Company, is one of the
largest distributors of electronic components, computer products and
embedded technology serving customers in more than 70 countries
worldwide. Avnet accelerates its partners' success by connecting the
world's leading technology suppliers with a broad base of more than
100,000 customers by providing cost-effective, value-added services and
solutions. For the fiscal year ended July 2, 2011, Avnet generated
revenue of $26.5 billion. For more information, visit www.avnet.com.
Visit Avnet's Investor Relations Website at www.ir.avnet.com
or contact us at email@example.com.
Michelle Gorel, +1 480-643-7653
President, Public Relations
Vincent Keenan, +1 480-643-7053
Source: Avnet, Inc.
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