Avnet has completed its acquisition of Savoir Technology Group, a distributor of IBM midrange servers, executives say.
Savoir's IBM distribution business will fold into Hall-Mark Global Solutions' division of Avnet Computer Marketing, an enterprise computer systems and software distributor based here.
Savoir President and COO Joe Mertens will be executive vice president/general manager of the combined IBM business unit. He will report to Rick Hamada, president of Hall-Mark Global Solutions, based in Tempe, Ariz.
Savoir's $60 million storage products unit and $15 million integration business will be positioned under the Avnet Applied Computing umbrella. The addition of Savoir's integration customers to Avnet Applied Computing is expected to bring incremental business without significant additional overhead, broaden its customer base and strengthen the bottom line, executives say.
Savoir common stock shareholders will get 0.11452 of a share of Avnet common stock for each share of Savoir stock. When Savoir shareholders approved the transaction on May 23, more than 13.6 million Savoir shares were outstanding, which will result in 1.9 million shares of Avnet stock, valued at approximately $118 million. The transaction was originally valued at $140 million.
"We're confident that the merger of the two companies will benefit suppliers, customers and shareholders," says Roy Vallee, chairman and chief executive at Avnet. "I fully expect the transaction to be accretive to Avnet's earnings per share in the six-month period following the merger."
Avnet posted sales of more than $9 billion, with a pro forma of more than $10 billion including acquisitions, for fiscal year 2000.
