Melville, New York, February 7, 2000 — Arrow Electronics, Inc. (NYSE:ARW) today announced that it has agreed to acquire Tekelec Europe, one of Europe's leading distributors of high-tech components and systems. Headquartered near Paris, Tekelec's subsidiaries serve most EEC countries and generated revenues in 1999 of approximately $325 million.
"Our strategy in effecting mergers, acquisitions, and joint ventures has remained constant over the years -- to add quality companies to the global Arrow family," said Stephen P. Kaufman, Chairman and Chief Executive Officer of Arrow. "Tekelec has been a respected market leader in France and throughout Europe for more than four decades, and we are confident that this transaction presents a win-win situation for Tekelec's customers and suppliers as well as ours." Arrow's European business, which holds a preeminent position in the region, will be strengthened in several countries as Tekelec is active throughout Europe with a strong focus on creating demand for the proprietary products of their suppliers.
"I am very pleased that Tekelec will be joining forces with Arrow, our industry's leader around the world and in Europe," said Jean-Claude Asscher, founder and Directeur General of Tekelec. "We will now be able to provide an expanded customer base with an unparalleled line card and a wide range of value-added services."
Founded in 1958, Tekelec has relationships with semiconductor suppliers such as Altera, AMD, Intel, Linear Technology, Siemens/Infineon Technologies, and STMicroelectronics, as well as such suppliers of passive, electromechanical, and connector products as Kemet and Tyco Electronics. The company has also been a key engineering and supply partner to leading original equipment manufacturers such as Alcatel, Siemens, and Philips.
"We welcome Tekelec to the Arrow family," said Francis M. Scricco, President and Chief Operating Officer of Arrow. "Their engineering-led sales and support structure will complement our existing network in Europe. In addition, they have long-standing relationships with some of the leading names in the business. We intend to integrate those relationships with ours, which will enable us to add value throughout the European supply chain."
The transaction, which is subject to customary closing conditions, including obtaining necessary regulatory approvals, is expected to be completed before the end of the second quarter.
About Arrow
Arrow Electronics is the world's largest distributor of electronic components and computer products, with 1999 sales in excess of $9 billion. Headquartered in Melville, New York, Arrow serves as a supply channel partner for more than 600 suppliers and 175,000 original equipment manufacturers and commercial customers through more than 200 sales facilities and 26 distribution centers in 35 countries.