NEW YORK, April 4, 2007 – In a move to capitalize on the rapid growth of the value-added storage and software business, Arrow Electronics, Inc. has completed its $485 million acquisition of the KeyLink Systems Group distribution group of Agilysys, Inc. and Agilysys Canada Inc. The international law firm Milbank, Tweed, Hadley & McCloy LLP represented Arrow Electronics, Inc., Support Net, Inc. and Arrow Electronics Canada Ltd. in structuring the transaction and negotiating and preparing the definitive documents relating to the acquisition.
The Milbank team representing Arrow Electronics was led by New York-based Global Corporate partners Howard S. Kelberg and David J. Wolfson. New York-based Milbank associate Scott McClelland also worked on the transaction. Goldman, Sachs & Co. acted as financial advisor.
Mr. Kelberg noted, “We were pleased to represent long-time Milbank client Arrow Electronics in this strategic acquisition. The deal further establishes Arrow as a global leader in the distribution of electronic and computer products, services and solutions.”
About the Transaction:
In a $485 million all cash transaction, Arrow Electronics, Inc. (“Arrow”) has acquired substantially all of the assets and operations of the Agilysys’ KeyLink Systems Group (“KeyLink”), a leading enterprise computing solutions distributor. Arrow has also entered into a long-term procurement agreement with the Agilysys Enterprise Solutions Group, Agilysys’ value-added reseller business.
Based in Cleveland, Ohio, KeyLink is a leading value-added distributor of enterprise servers, storage and software in the United States and Canada. The acquisition of KeyLink, which will be integrated into Arrow’s Enterprise Computing Solutions (“ECS”) group, increases Arrow’s market share in the rapidly growing segment of value-added storage and software. Arrow also becomes the largest distributor of IBM and HP Enterprise Products.
Arrow Electronics, Inc. [NYSE: ARW] is a global provider of products, services and solutions to industrial and commercial users of electronic components and computer products. Headquartered in Melville, New York, Arrow serves as a supply channel partner for more than 600 suppliers and 140,000 original equipment manufacturers, contract manufacturers and commercial customers through a global network of 260 locations in 55 countries and territories.
Milbank, Tweed, Hadley & McCloy LLP is a preeminent global law firm that for more than 140 years has provided innovative legal solutions in many of the world’s largest, most complex, “first-ever” corporate transactions and litigation. Our transactional expertise includes capital markets, corporate finance and transactions, project finance, acquisition finance, and other major fields of law practice. Milbank litigation teams resolve disputes involving mergers and acquisitions, proxy battles, financings and securities offerings, intellectual property, white collar crime, and corporate restructurings, among others. Our clients range from prominent multinational financial, industrial and commercial enterprises to governments, institutions and individuals. The Firm is headquartered in New York, with offices in Los Angeles, Washington, DC, London, Frankfurt, Munich, Tokyo, Hong Kong, Singapore and Beijing.
Howard S. Kelberg