Pressroom
Arrow Electronics To Acquire Alternative Technology, Inc.
Expands Software Solutions Business
MELVILLE, NEW YORK — October 5, 2006 — Arrow Electronics, Inc. (NYSE:ARW) announced that it has signed a definitive agreement pursuant to which Arrow will acquire Alternative Technology, Inc., a leading specialty distributor of access infrastructure and security solutions.
“The acquisition of Alternative Technology enables us to further expand the breadth of products and services offered by our Enterprise Computing Solutions business and we are pleased to be partnering with such a strong and well-managed business,” stated William E. Mitchell, chairman, president and chief executive officer of Arrow Electronics, Inc.Â
Alternative Technology, which is headquartered in Englewood, Colorado and has approximately 150 employees, supports value-added resellers in delivering solutions that optimize, accelerate, monitor and secure an end user’s network. Total 2006 sales are expected to exceed $300 million. Â
“We are delighted about becoming part of such a prestigious and well-regarded global company. This transaction will enable Alternative Technology to further strengthen its channel management services for our vendors and provide a more comprehensive suite of solutions for our reseller customers,” stated William Botti, president of Alternative Technology, Inc.
The transaction, which is expected to be accretive in 2007, is subject to customary closing conditions, including obtaining necessary government approvals, and is expected to be completed within the next sixty days.
Arrow Electronics is a major global provider of products, services and solutions to industrial and commercial users of electronic components and computer products. Headquartered in Melville, N.Y., Arrow serves as a supply channel partner for nearly 600 suppliers and more than 135,000 original equipment manufacturers, contract manufacturers and commercial customers through a global network of more than 270 locations in 53 countries and territories.
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Contacts:
Ira M. Birns
Vice President & Treasurer
Arrow Electronics
631-847-1657
Paul J. Reilly
Senior Vice President & Chief Financial Officer
Arrow Electronics
631-847-1872
Media Contact:
Jacqueline F. Strayer
Vice President, Corporate Communications
Arrow Electronics
631-847-2101
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The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. This press release contains forward-looking statements that are subject to certain risks and uncertainties which could cause actual results or facts to differ materially from such statements for a variety of reasons including, but not limited to: industry conditions, changes in product supply, pricing, and customer demand, competition, other vagaries in the computer and electronic components markets, changes in relationships with key suppliers, the effects of additional actions taken to lower costs, the ability of the company to generate additional cash flow and the other risks described from time to time in the company’s reports to the Securities and Exchange Commission (including the company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q). Forward-looking statements are those statements, which are not statements of historical fact. You can identify these forward-looking statements by forward-looking words such as "expects," "anticipates," "intends," "plans," "may," "will," "believes," "seeks," "estimates," and similar expressions. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to update publicly or revise any forward-looking statements.