Avnet buys Memec

In a stock and cash transaction valued at approximately $676 million, component distributor

is to buy semiconductor distributor Memec in a stock and cash transaction valued at approximately $676 million, including the assumption of approximately $194 million of Memec's net debt.

Under the terms of the agreement between the two, Memec investors will receive a total of approximately 24.011 million shares of Avnet common stock plus approximately $64 million of cash.

Memec, a global distributor specialising in semiconductors, generated revenue of approximately $2.3 billion in 2004.

The privately-held company, which employs 2,400 people, will be integrated into Avnet's Electronics Marketing Group, which will have operations in 69 countries and anticipated annual sales of over $8.5 billion after the acquisition.

Memec, with operations in 33 countries and 130 cities, is one of the largest semiconductor distributors. In 2004, it grew its total revenue by approximately 27%, with the Americas accounting for 44%, followed by the Asia region, including Japan, at 31% and Europe, Middle East and Africa at 25%.

The closing of the transaction, which is subject to customary regulatory approvals, is anticipated in 60 to 90 days.