Avnet To Buy Access Distribution

The deal, expected to close by the end of the year, would bring Phoenix-based Avnet the largest Sun Microsystems distribution business and more than $2 billion in annualized revenue.

Avnet also offers the IBM and Hewlett-Packard enterprise platforms, and with the Access acquisition, Avnet would join Arrow Electronics as the only distributors to carry the full lines of all three vendors.

"Access' deep-rooted relationships with Sun Microsystems and its extensive value-added reseller base provides a strong complement to Avnet's existing partnerships," Avnet Chairman and CEO Roy Vallee said in a statement. "As a well-respected IT distributor with valuable franchises, strong technical capabilities and talented people, Access represents an excellent strategic fit."

Plans call for Westminster, Colo.-based Access, which was owned by General Electric, to be integrated into Avnet Technology Solutions. More than 90 percent of Access' revenue comes from the Americas, with the remainder in Europe. The Sun business from Access will remain a separate unit in Avnet and have dedicated resources, similar to the way that Avnet operates its IBM and HP units.

"The combined expertise of both organizations will enable us to continue to grow and expand our business and offer tremendous value to the market," Access President and CEO Anna McDermott said in a statement.

Before the acquisition was announced, analysts projected Avnet to post $15.2 billion in revenue for its current fiscal year, which ends in June.

Avnet shares were trading at $24.99 Monday morning, up 15 cents per share.