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Exhibit 99.1
NEWS
ARROW ELECTRONICS, INC.
25 HUB DRIVE
MELVILLE, NEW YORK 11747
516/391/1300
ARROW ELECTRONICS TO ACQUIRE MOCA(R)
-- A Leading Reseller of Sun Microsystems in North America --
MELVILLE, NEW YORK, September 18, 2000 -- Arrow Electronics, Inc. (NYSE:ARW) and
Merisel, Inc. (NASDAQ:MSEL) today announced that they have signed a definitive
agreement under which Arrow will acquire the Merisel Open Computing Alliance
(MOCA(R)) for an initial purchase price of $110 million in cash plus the
assumption or repayment of approximately $70 million of off-balance sheet
financing, subject to adjustments at closing. The agreement also provides that
the purchase price may be increased by up to an additional $37.5 million based
upon future developments with respect to MOCA's business.
"MOCA is the fastest growing distributor of Sun Microsystems products, both
hardware and software, in North America," said Francis M. Scricco, President and
Chief Executive Officer of Arrow. "We are delighted that Rich Severa, Bill Page,
and the rest of the MOCA team will be joining the Arrow family and working with
our North American Computer Products Group."
MOCA, with 1999 revenues of approximately $950 million, is wholly focused on Sun
Enterprise Solutions, selling enterprise software, storage area networks,
Solaris operating systems and professional services which run on Sun hardware.
With over 100 sales consultants in North America and 24 technical services and
support team members, MOCA has grown its customer base substantially since being
authorized to sell and support Sun products at the end of 1993.
"Sun is one of the preeminent hardware suppliers to the Internet
infrastructure," added Mike Long, President of Arrow's North American Computer
Products Group. "MOCA's solid relationship with Sun will enable us to take full
advantage of the explosive growth in next-generation network computing."
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The transaction is subject to customary closing conditions, including obtaining
necessary government approvals, and is expected to be completed within the next
sixty days.
Arrow Electronics is the world's largest distributor of electronic components
and computer products, with 1999 sales of $9.3 billion. Headquartered in
Melville, New York, Arrow serves as a supply channel partner for more than 600
suppliers and 175,000 original equipment manufacturers and commercial customers
through more than 225 sales facilities and 19 distribution centers in 37
countries. Detailed information about Arrow's operations can be found at
www.arrow.com.
Merisel Open Computing Alliance, Inc. (MOCA(R)), a subsidiary of Merisel, Inc.,
provides high-touch customer service and support to Sun Microsystems-authorized
solution providers and consultants throughout North America. The company has
built its reputation on setting new service standards in the Sun channel, and
its partners are among the fastest growing in the industry. Through the delivery
of complete enterprise solutions, customized fulfillment services and
unparalleled customer satisfaction, MOCA is advancing its leadership position.
Visit MOCA at www.moca.com.
# # #
Contact: Robert E. Klatell
Executive Vice President
516-391-1300
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor"
for forward-looking statements. This press release contains forward-looking
statements that are subject to certain risks and uncertainties which could cause
actual results or facts to differ materially from such statements for a variety
of reasons including, but are not limited to: industry conditions, changes in
product supply, pricing, and customer demand, competition, other vagaries in the
computer and electronic components markets, changes in relationships with key
suppliers and the other risks described from time to time in the company's
reports to the Securities and Exchange Commission (including the company's
Annual Report on Form 10-K). Shareholders and other readers are cautioned not to
place undue reliance on
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these forward-looking statements, which speak only as of the date on which they
are made. The company undertakes no obligation to update publicly or revise any
forward-looking statements.
