Avnet, Inc. Announces Agreement to Acquire BrightStar Partners, Inc. and BSP Software LLC
Further strengthens Avnet's IBM solutions portfolio by addingBusiness Analytics and Performance Management expertise
PHOENIX--(BUSINESS WIRE)-- Avnet, Inc. (NYSE:AVT) announced today that it has agreed to acquire BrightStar Partners, Inc., an IBM Business Analytics and Performance Management consulting firm, as well as BSP Software LLC, an IBM Business Analytics software vendor (collectively BSP). BSP is an IBM Premier Business Partner, IBM Value Added Reseller and IBM Independent Software Vendor focused on the IBM Cognos Business Analytics product portfolio with expertise in the areas of business intelligence, financial performance management, enterprise scorecarding and data warehousing. This acquisition, which is expected to close within thirty days, will be integrated into the Avnet Technology Solutions, Americas services organization.
In addition to professional services, BSP develops and distributes Implementation-Based Software® applications that extend business value and assist in the administration, development and support of IBM Cognos software. BSP also owns and operates COGNOiSe.com, the world's largest independent peer-to-peer collaborative IBM Cognos support community, with more than 15,000 members worldwide. As an end-to-end solutions provider, BSP partners with companies to improve their business performance through maximizing their investment in technology and processes to drive better information throughout the enterprise. The company generated revenue of approximately US$10 million in the 2011 calendar year.
"This acquisition is part of our long-term strategy to enhance the depth and breadth of our IBM services and software capabilities while providing the expertise our partners need," said Jeff Bawol, president Avnet Technology Solutions, Americas. "BSP complements the offerings available through our recent acquisition of Ascendant Technology and will be managed through Americas' services organization. Our ability to provide a complete solution of software, services and hardware will drive growth for our suppliers and value-added resellers."
Founded in 2004, BrightStar Partners' broad technical and business experience provides the highest quality end-to-end solutions to help enterprises realize the benefits from their reporting, analysis, dashboarding, data warehousing, planning and consolidation solutions, all while shortening the time to market for implementation and realizing true business value. BSP Software was formed in 2006 to extend the value of IBM Cognos solutions and add capabilities to IBM Cognos users worldwide. Over time, BSP's patented product portfolio has grown to include Administration, Lifecycle Management, Version Control and Performance Monitoring, among others.
"BSP's expertise is directly aligned with our industry-leading vertical market practices and will support partners' ability to deliver increasingly complex and customized IT solutions needed by customers in high growth markets," added Tony Vottima, senior vice president, Avnet Technology Solutions, Americas' services organization.
This acquisition is expected to be immediately accretive to earnings and supports Avnet's return on capital goal of 12.5%.
This press release contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on management's current expectations and are subject to uncertainty and changes in facts and circumstances. The forward-looking statements herein include statements addressing future financial and operating results of Avnet and may include words such as "will," "anticipate," "expect," believe," "intend," and "should," and other words and terms of similar meaning in connection with any discussions of future operating or financial performance or business prospects. Actual results may vary materially from the expectations contained in the forward-looking statements.
The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: the Company's ability to retain and grow market share and to generate additional cash flow, risks associated with any acquisition or disposition activities, the successful integration of acquired companies, any significant and unanticipated sales decline, changes in business conditions and the economy in general, changes in market demand and pricing pressures, any material changes in the allocation of product or product rebates by suppliers, allocations of products by suppliers, other competitive and/or regulatory factors affecting the businesses of Avnet generally.
More detailed information about these and other factors is set forth in Avnet's filings with the Securities and Exchange Commission, including the Company's reports on Form 10-K, Form 10-Q and Form 8-K. Except as required by law, Avnet is under no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Avnet, Inc. (NYSE:AVT), a Fortune500 company, is one of the largest distributors of electronic components, computer products and embedded technology serving customers globally. Avnet accelerates its partners' success by connecting the world's leading technology suppliers with a broad base of customers by providing cost-effective, value-added services and solutions. For the fiscal year ended June 30, 2012, Avnet generated revenue of $25.7 billion. For more information, visit www.avnet.com. (AVT_IR)
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