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Synnex Completes New Age Acquisition

4/02/2008 10:22:00 AM Eastern

Fremont, Calif. — Synnex Corp. yesterday completed the acquisition of substantially all the assets of New Age Electronics in a deal that was first announced in February.

According to Synnex, the company paid $31.5 million in cash at the closing and about $22.75 million in additional deferred and earn-out payments, which are subject to certain post-closing conditions, and are expected to be paid within the first 15 months after the close. The company said it refinanced approximately $82 million in working capital debt in connection with the net assets acquired.

“The completion of the New Age acquisition marks another strategic move into the consumer electronics space following our 2007 acquisition of the Redmond Group of Companies in Canada. New Age Electronics will greatly expand Synnex’ consumer electronics offering and place us in a leadership position in North America,” said Robert T. Huang, president and co-CEO of Synnex.

Synnex said that New Age will contribute approximately nine weeks of financial results to its fiscal 2008 second quarter, which will end May 31, and said it had adjusted its revenue expectations accordingly.

Under its new ownership, New Age will operate as a division of Synnex Corporation with Adam Carroll as president, Fred Towns as sales senior VP and Gary Palenbaum as marketing senior VP.

In other Synnex news, the company also announced yesterday that it has appointed former Ingram Micro president and COO Kevin M. Murai as its co-CEO. Murai is expected to share the CEO seat with Huang through November, when Huang is expected to retire and Murai will take the role on alone.