avnet to acquire itx for $69.2 million or $1.4

On my calcs works out to be $1.40 a share, so I feel better selling half for that amount.


Avnet to acquire itX Group for $69.2 million August 13, 2010 - 9:05PM

Electronic parts and computer products distributor Avnet Inc. said Friday it will acquire itX Group Ltd., an Australian distributor of software, hardware and services in an all-cash deal valued at $69.2 million.

The deal requires approval by itX shareholders and Australian courts.

The Australian company reserves the right to pay to its shareholders a special dividend of up to nearly $9 million, on top of its normal full-year dividend, subject to certain conditions.

If the special dividend is declared and paid, the cash consideration for the deal will be reduced accordingly.

The deal is expected to close by the end of the year and should be immediately accretive to earnings.

In 2009, itX generated revenue of about $131.5 million. It has 150 employees.

Avnet said the deal helps it expand in the Asia Pacific region and specifically in Australia.

On Wednesday, Avnet reported a better-than-expected fiscal fourth-quarter profit, helped by revenue growth across all regions.

Shares of Avnet closed Thursday at $24.41.