Arrow Electronics Inc. said today it has completed its acquisition of the storage and security distribution business of InTechnology plc for approximately $80 million.
The deal, announced earlier this month, will allow Arrow's Enterprise Computing Solutions division to make further inroads into the United Kingdom, Europe's second-largest IT market.
InTechnology Distribution (Harrogate, England) serves the value-added reseller market in the U.K. The 200-employee company was expected to record more than $400 million in sales in 2006.
Arrow's computer division had global 2005 revenue of $2.7 billion. The Melville, N.Y.-based global distributor has been making strides toward increasing its presence in the European computer market.
"The addition of InTechnology's storage and security distribution business is a key strategic step towards our goal of becoming the preeminent provider of enterprise computing solutions in Europe," said Kurt Schoeffer, managing director of the DNS business of Arrow Enterprise Computing Solutions.
Arrow anticipates the transaction will be accretive to earnings in 2007, in the range 2 to 4 cents.