Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: HandsOn who wrote (65504)	10/12/1999 5:10:00 PM
From: Tim Luke	Read Replies (1) \| Respond to of 90042

well PIOS is now the leader...i guess the sell in knt at 19+ was a good idea...this confirms they are no longer inplay.. . . . . Tuesday October 12, 4:17 pm Eastern Time Company Press Release Kent Electronics Continues Expansion of Network Systems Capability With Acquisition of Orange Coast Companies HOUSTON--(BUSINESS WIRE)--Oct. 12, 1999--Kent Electronics Corporation (NYSE:KNT - news) today announced that Kent Datacomm, its network integration division, has signed a definitive agreement to acquire Orange Coast Datacomm, Inc., Orange Coast Cabling, Inc. and Go Telecomm, Inc., the three California based network integrators comprising the Orange Coast Companies. These companies provide comprehensive end-to-end voice and data network solutions to major corporations. Mark A. Zerbe, Kent Executive Vice President and President of Kent Datacomm, stated, ''We continue to make strategic acquisitions to expand our infrastructure and enhance our higher margin service offering. The Orange Coast Companies bring their strong voice integration background to Kent Datacomm. This enhances our ability to capitalize on the convergence of voice and data technologies. We look forward to welcoming Jim Moran, President of the Orange Coast Companies, and his talented organization to the Kent network integration team.'' Jim Moran, President of the Orange Coast Companies, said, ''We believe Kent's national presence and strong supplier relationships will be enhanced by our service and voice integration capabilities. This combination makes us a clear leader in one of the largest network integration markets in the U.S.'' The Orange Coast Companies have offices in Irvine and Santa Clara, California, and employ approximately 110 people. The combined sales were approximately $19 million for the year ended December 1998. This transaction, which the Company anticipates will close within 60 days, is expected to be earnings per share neutral to slightly accretive for Kent in fiscal 2000. The terms of the transaction were not disclosed. Consummation of these transactions are subject to customary regulatory approvals including those required under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The forward-looking statements in this press release involve risks and uncertainties which could cause actual results, performance or trends, including the above-mentioned anticipated improvement in performance, to differ materially from those expressed in the forward-looking statements. The Company believes that all forward-looking statements made by it have a reasonable basis, but there can be no assurance that management's expectations, beliefs or projections as expressed in the forward-looking statements will actually occur or prove to be correct. In addition to general industry and economic conditions, factors that could cause actual results to differ materially from those discussed in the forward- looking statements in this press release, include, but are not limited to, the risks relating to forward-looking statements discussed in the Company's Annual Report on Form 10-K for the fiscal year ended April 3, 1999, including, but not limited to, the risks discussed under the captions ''Downward Pressure on Margins,'' ''Cycles in the Electronics Industry; General Economic Conditions,'' ''Dependence on KTEC Customers; Uncertainty of Increasing Contract Manufacturing Sales,'' ''Management of Growth,'' ''Competition,'' ''Risks Associated with Acquisitions'' and ''Dependence on Significant Suppliers.'' Kent Electronics is among the largest publicly traded specialty electronics distributors and network integrators. Kent's contract manufacturing subsidiary, KTEC Electronics, is among the leading contract manufacturers in the U.S.