Avnet to buy Japanese electronic components distributor

Avnet Inc. has revealed that, through its wholly-owned subsidiary Memec Group Ltd, it has closed the tender offer bid for Internix Inc. Nearly 92 percent of the outstanding shares of Internix's common stock on a fully diluted basis were validly tendered and accepted, well above the 67 percent threshold set out in the offer document as a condition for Avnet to accept the tendered shares. Avnet expects to complete the acquisition before the end of the calendar year.

Established in 1970, Internix is an electronics components distributor representing both Japanese and foreign suppliers serving primarily Japanese OEMs. This acquisition is expected to be immediately accretive to earnings and achieve Avnet's return on capital goal of 12.5 percent within three years.

"This acquisition brings us significant new suppliers and customers including virtually all the major Japanese electronic OEMs, thereby positioning us to accelerate profitable growth. The high percentage of shareholders who supported our TOB offer shows their confidence in Avnet's strategy to expand through acquisitions in Japan's relatively unconsolidated market for electronic components," stated Tom McCartney, president, Avnet EM Holdings (Japan) K.K. "The addition of Internix to the Avnet EM Group of companies in Japan enhances the breadth of our design chain services offerings in this strategic market. The combination of the businesses will increase our scale and scope in the region which, when combined with Electronics Marketing's global logistics capabilities, will provide complete supply chain support to Japanese OEMs wherever their products are manufactured."

With operations in Japan, Singapore, Hong Kong, the People's Republic of China and Thailand, Internix distributes active and passive components from leading suppliers including AKM, Cirrus Logic, Honeywell, Maxim, Microchip, Microsemi, RICOH and SMSC.