The Channel logo

News

By | Paul Kunert 28th August 2013 09:31

Arrow Electronics engulfs hefty data centre player in €230m gobble

VC sellers light big cigars, chuckle fatly

Serial swallower Arrow Electronics has wolfed down security and network distie Computerlinks (C'links) in a deal valued at €230m (£198m).

Word on the street was that US-based giant Arrow had been locked in buyout talks with the privately-owned, Germany-based player earlier in the summer, but the deal was only confirmed late last night.

"This acquisition supports our strategy to serve the data centre of the future," said Arrow CEO Michael Long in a canned statement.

Venture capitalist Equistone - previously Barclays Private Equity - took C'links off the Frankfurt stock exchange five years ago for €104m (£89.94m). From that time, as an independently owned entity the business released only heavily abbreviated accounts.

Back in March, C'links - which employs around 660 staff - said group revenues in EMEA and North America reached €943m in calendar 2011, up 23 per cent on the previous year. It did not reveal profit.

According to new owner Arrow, Computerlinks operations are forecast to turn €700m in revenues this year - or $950m in accordance with US generally accepted accounting principles (GAAP).

So clearly the challenging market conditions last year and this have taken a toll on top line growth.

Neither has Arrow been immune to the recession, keeping costs in check to match leaner trading conditions, though in the last set of numbers for Q2 things appeared to be looking up.

Arrow, much like its arch rival Avnet, has been engaged in a buy-and-build strategy for years, picking off smaller targets operating in higher margin technologies including InTechnology and Sphinx.

The deal is subject to regulatory approval and is estimated to close in the last quarter of this year.

Update C'links has been in touch to say that it uses International Financial Reporting Standards (IFRS) when accounting for sales, and as such is forecasting sales of €1.1bn this year including €400m of renewals.

The spokeswoman pointed out that Arrow uses the US system, Generally Accepted Accounting Principles (GAAP), which does not include renewals. Under GAAP, renewals are termed as agency business. ®

alert Send corrections

Opinion

Walking on water, image via Shutterstock

Chris Mellor

IDC stats reveal who's who in the backup appliance bearpit
Carry on Cleo

Gavin Clarke

Infamy, infamy, Amazon and Microsoft have all got it in for me!

Tim Anderson

Also signals stronger cross-platform tools, access to new markets

Features

Nerd fail photo via Shutterstock
Shouting match
Single market vs. rest of the world
hacker
Mostly it's financial crime. Here's what all the cool kids' terms mean in English
Apple logo. Pic: Blake Patterson
Plenty of bumps in the 40-year road for Mac makers