Arrow Electronics Acquires Agilysys KeyLink Systems Group

Arrow Electronics, Inc. has completed its previously announced acquisition of substantially all of the assets and operations of the Agilysys KeyLink Systems Group, an enterprise computing solutions distributor.

The price of the acquisition was $485 million in cash, subject to final adjustments based upon a closing audit. Arrow has also entered into a long-term procurement agreement with the Agilysys Enterprise Solutions Group, Agilysys’ value-added reseller business.

"We are now the leading value-added distributor in the fast growing segments of storage and security and virtualization software, as well as the leading value-added distributor of enterprise products for both IBM and Hewlett Packard. In the last 15 months, we have transformed our enterprise computing business into a much stronger organization with a broader line card, a more robust customer and supplier base, and an expanded geographic reach," stated William E. Mitchell, chairman, president and chief executive officer of Arrow.

The acquisition is expected to be $.15 to $.17 accretive in 2007, including an estimated $.04 of intangible amortization, while generating $30 million in operating cash flow annually. Pro forma sales for the 2007 calendar year, including revenues associated with the above mentioned procurement agreement, are expected to be in excess of $1.2 billion. The transaction was funded with cash-on-hand plus borrowings under Arrow’s existing committed liquidity facilities.

Arrow serves as a supply channel partner for more than 600 suppliers and 140,000 original equipment manufacturers, contract manufacturers and commercial customers through a global network of 260 locations in 55 countries and territories.