Logicalis to Take Avnet’s HP Unit

Consolidation among technology and service providers is a
familiar tune, and Logicalis knows it. The company agreed to buy Avnet’s U.S.-based HP enterprise end-user business for an undisclosed sum.

Logicalis, a major HP partner and IT integration specialist, inked the deal
for the $100 million unit with Avnet Partner Solutions, a division of Avnet
that distributes HP servers, storage, software and services to corporations.

“This acquisition will solidly position Logicalis not only as a leading
Unix-platform and storage high performance integrator, but also as a leading
Wintel/Linux-platform solution provider,” said Mike Cox, president and CEO
of Logicalis’ North American operations, in a statement.

The deal follows a flurry of acquisitions to improve the Bloomfield Hills,
Mich.-based ability to integrate technology from its top product lines,
which include HP, IBM, Cisco and EMC.

In March 2005, Logicalis acquired Eisco Technology, a $20 million company
that serves high-end IBM zSeries mainframe solutions. In August 2004,
Logicalis purchased Solution Technology Inc. (STI), a $90 million IBM

Logicalis has also made several recent buys in Europe, including IBM Premier
Partner TBC, IBM Business Partner Notability and HP Elite Partner Hawke
Systems, all of which have closely aligned Logicalis’ U.S. and European

Logicalis, an HP platinum partner, anticipates strong organic growth
combined with the successful integration of its acquisitions.

Should the deal succeed by January 2006 as expected, Logicalis’ U.S. revenue
will exceed $450 million and annualized global revenue will be approximately
$700 million.

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