Avnet Sells New ProSys Corp. - Analyst Blog

Avnet, Inc. (AVT) recently announced that it sold its non-core asset New ProSys Corp. to ACS Acquisition Corp., an affiliate of Applied Computer Solutions. The total sale consideration includes a cash payment at closing and a three-year earn-out amount based upon New ProSys Corps' anticipated results.

Based in Phoenix, AZ, Avnet is one of the world's largest distributors of electronic components and computer products.

In July 2010, Avnet acquired Bell Micropoducts and Avnet acquired ProSys as a part of the Bell Microproducts acquisition. Avnet had announced its intention to sell this non-core asset at that time. 

Employing 360 people, New ProSys Corp. is a value-added reseller and deploys customized, leading-edge solutions from premier technology vendors that help enterprise, public sector and educational customers address their most complex IT infrastructure needs. This business generated revenues of $417.7 million in the twelve months.

Avnet recently announced that it completed its acquisition of Australian based value-added IT distributor itX Group Limited (itX) for $79.1 million.

itX distributes software, hardware and services from leading suppliers including Oracle Corp (ORCL), International Business Machines Corp. (IBM), VMware, Inc. (VMW), Apple Inc. (AAPL), Citrix Systems, Inc. (CTXS) and Red Hat, Inc. (RHT) among others. The company generated sales of $162.8 million in fiscal 2010 and employs approximately 150 people with offices in Sydney, Melbourne, Brisbane, Perth, Canberra and Adelaide.

The transaction is expected to be immediately accretive to earnings. Avnet expects that the itX business will add complementary suppliers and business partners and expand its footprint in Australia.