Avnet Agreed To Acquire Peer Bell Micro For $252 Million; Views Upbeat

   DOW JONES NEWSWIRES 
 

Avnet Inc. (AVT) agreed to acquire fellow technology distributor Bell Microproducts Inc. (BELM) for $252 million as Avnet looks to bulk up as the technology sector has been rebounding.

Both companies, which distribute computers among other items, also said their current-quarter sales will be at the high end of their prior expectations, while Avnet said earnings will top previous estimates.

Bell holders would get $7 a share, a 30% premium to Friday's closing price. The stock was at 50 cents a share ago but traded above $7 as recently as 2007. Including assumed debt, the deal is valued at $594 million.

Among other positives about the deal, Avnet's Chairman and Chief Executive Roy Vallee said buying Bell will give it increased access to "the fast-growing Latin America market. Bell's position in datacenter products and embedded systems complements Avnet's current strategies and creates opportunities for cross selling." Bell's position as one of the leaders in hard disk drive distribution substantially increases Avnet's exposure to this product segment, which is currently focused on embedded computing.

Avnet shares closed Friday at $28.37 and were inactive premarket. The stock is up 55% the past year.

-By Jodi Xu and Kevin Kingsbury, Dow Jones Newswires; 212-416-3037; [e-mail]