Avnet US buys Access to Sun for $US412.5 million

Avnet US buys Access to Sun for $US412.5 million

Avnet Partner Solutions Australia has no immediate plans to open talks with Sun Microsystems following its parent company's decision to acquire US-based Sun distributor, Access Distribution.

Avnet struck a deal last week with the Generic Electric subsidiary to acquire Access for $US412.5 million in cash. The deal is subject to adjustments. It is due to be closed by the end of the year.

Access operates in the US and Europe. Its forecasted annual revenue to the end of 2006 is more than $US2 billion. In a statement, Avnet chairman and CEO, Roy Vallee, said the distribution company's long-standing relationship with Sun, as well as its extensive value-added reseller base, would be highly complementary to the Avnet business. Avnet currently carries HP and IBM.

While significant in the US, local marketing director, Michael Costigan, said Access had no footprint in Australia. As a result, the new acquisition was not expected to impact local operations.

The Australian company would not be pursuing any talks with Sun at this stage, he said.

"We have put on several new vendors this year, so we have enough have on our plate in getting them integrated," Costigan said.

New local vendor partners include NetApp, Alcatel and Silicon Graphics.

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