Exhibit 99.1
Arrow Electronics to Acquire the Agilysys KeyLink Systems Group
--Arrow to Become Leading Distributor of IBM and HP Enterprise
Products--
--Further Increases Revenues From Fast Growing Storage and
Software Markets--
--Acquisition Immediately Accretive Post Closing--
MELVILLE,
N.Y.--(BUSINESS WIRE)--Jan. 2, 2007--Arrow Electronics,
Inc. (NYSE:ARW) announced today that it has signed a definitive
agreement pursuant to which Arrow will acquire substantially all
of
the assets and operations of the Agilysys KeyLink Systems Group
("KeyLink"), a leading enterprise computing solutions distributor,
for
$485 million in cash. Arrow will also enter into a long-term
procurement agreement with the Agilysys Enterprise Solutions
Group,
Agilysys' value-added reseller business.
Based in
Cleveland, Ohio, KeyLink is a leading value-added
distributor of enterprise servers, storage and software in the
United
States and Canada. Through approximately 500 employees, KeyLink
provides complex solutions from industry leading manufacturers to
more
than 800 reseller partners. Pro forma sales for the 2006 calendar
year
are expected to be approximately $1.6 billion, which include
revenues
that will be associated with the above-mentioned procurement
agreement.
"With this
acquisition, we will become the leading distributor of
enterprise products for both International Business Machines Corp.
and
Hewlett Packard Company, as well as the leading value-added
distributor of storage and software," stated William E.
Mitchell,
chairman, president and chief executive officer of Arrow
Electronics,
Inc. "Keylink is a natural complement to our existing
enterprise
computing solutions business with its value-added approach and
its
resellers' focus on small and medium sized customers," added
Mr.
Mitchell.
"Our
partnership will create significant cross selling
opportunities to further accelerate our growth in the global
enterprise computing solutions distribution market. All field
sales
positions will remain intact to ensure that we will continue to
provide our customers and suppliers with superior levels of
service,"
stated M. Catherine Morris, president, Arrow Enterprise
Computing
Solutions.
"We
believe KeyLink will further benefit from Arrow's considerable
global scale, vast customer base, strong financial resources
and
leadership in the technology distribution market," said Ar
