Avnet Sells VAR New ProSys Gained From Bell Micro Acquisition
ACS buys $418 million reseller for cash and three-year earn out provision.
Avnet Inc., the parent of distributor Avnet Technology Solutions, said it has sold New ProSys Corp., a $418 million value-added reseller gained through its acquisition last year of Bell Microproducts Inc. to Applied Computer Solutions Inc., an IT solutions provider based in Huntington Beach, CA.
Terms of the deal, which was accomplished through a combination of cash and a three-year earn out provision, were not disclosed by the parties.
At the time Avnet acquired Bell Micro in a $252 million transaction completed last July, the company voiced its intention to sell ProSys. The VAR, based in Atlanta, GA, employs 360 people, and, for the 12 month period ended June 30, 2010, generated about $418 million in sales. It sells IT solutions to businesses, public sector organizations and education institutions.
"This transaction divests a non-core asset and will allow ProSys to join one of the largest and fastest growing resellers in North America focused exclusively on end-user customers where they can leverage their capabilities to address an expanded set of opportunities," said Rick Hamada, Avnet president and chief operating officer.
Privately-held Applied Computer has been in operation since 1989. The solution provider offers a wide range of technology, including virtualization, storage, security, networking, enterprise management and telecom, as well as a full complement of services.
Applied Computers vendors include IBM Corp., Oracle Corp., VMware Inc., NetApp Inc., Juniper Networks Inc., Hewlett-Packard Co., Brocade Communications Inc. and others.