Pressroom
Arrow Electronics Completes Acquisition of Alternative Technology, Inc.
Expands North American Software Solutions Business
MELVILLE, NEW YORK -- November 30, 2006 -- Arrow Electronics, Inc. (NYSE:ARW) announced that it has completed its previously announced acquisition of Alternative Technology, Inc. for a purchase price of approximately $80 million, including the assumption of debt.
“The acquisition of Alternative Technology enables us to further expand the breadth of our Enterprise Computing Solutions business. We expect this transaction to create significant opportunities for us in the growing value-added software market,” stated M. Cathy Morris, acting president, Arrow Enterprise Computing Solutions. “We expect this transaction to be $.02 to $.04 accretive in 2007.”
Alternative Technology, which is headquartered in Englewood, Colorado and has approximately 150 employees, supports value-added resellers in delivering solutions that optimize, accelerate, monitor and secure an enduser’s network. Total 2006 sales are expected to exceed $300 million.
“We are delighted about becoming part of Arrow. This transaction will enable Alternative Technology to further strengthen its position in the market which will allow us to further enhance our channel management services for our vendors and provide a broader suite of solutions for our reseller customers,” stated William Botti, president, Alternative Technology, Inc.
Arrow Electronics is a major global provider of products, services and solutions to industrial and commercial users of electronic components and computer products. Headquartered in Melville, New York, Arrow serves as a supply channel partner for nearly 600 suppliers and more than 135,000 original equipment manufacturers, contract manufacturers and commercial customers through a global network of more than 270 locations in 53 countries and territories.
# # #
Contacts:
Ira M. Birns
Vice President and Treasurer
631-847-1657
Paul J. Reilly
Senior Vice President and Chief Financial Officer
631-847-1872
Media Contact:
Jacqueline F. Strayer
Vice President, Corporate Communications
631-847-2101
Safe Harbor
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. This press release contains forward-looking statements that are subject to certain risks and uncertainties which could cause actual results or facts to differ materially from such statements for a variety of reasons including, but not limited to: industry conditions, changes in product supply, pricing, and customer demand, competition, other vagaries in the computer and electronic components markets, changes in relationships with key suppliers, the effects of additional actions taken to lower costs, the ability of the company to generate additional cash flow and the other risks described from time to time in the company’s reports to the Securities and Exchange Commission (including the company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q). Forward-looking statements are those statements, which are not statements of historical fact. You can identify these forward-looking statements by forward-looking words such as "expects," "anticipates," "intends," "plans," "may," "will," "believes," "seeks," "estimates," and similar expressions. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to update publicly or revise any forward-looking statements.