Pinnacle Data Systems to be Acquired by Avnet

Pinnacle Data Systems, Inc. (AMEX:PNS) opened the trading session at $2.35 this morning and hasn’t strayed very far from there since as it last traded at $2.36 – representing a gain of 104.78%! PNS announced today that it has entered into a definitive agreement to be acquired by Avnet, Inc. (NYSE:AVT) in an all cash merger for $2.40 per share, which equates to an equity value of approximately $22 million as of September 30, 2011. Get my next ALERT 100% FREE

The acquisition has been approved by the Boards of Directors of both companies and is subject to the approval of PNS’s shareholders at a special meeting to be called by the Board of Directors of PNS, details of which will be forthcoming at a later date, as well as customary closing conditions. The transaction is expected to close in 60 to 90 days.

John D. Bair, founder and Chief Executive Officer of PNS, commented, “This transaction delivers excellent value to our shareholders, while our employees and customers benefit from the extensive resources Avnet brings as we seek to invest in and grow our business. Avnet’s financial strength, market reach and global infrastructure, combined with PNS’s technical and operational capabilities, will fuel accelerated growth and enhance our ability to deliver industry-leading value to the markets we serve.”

Steve Church, President, Avnet Integrated Resources, stated, “This acquisition builds on our commitment to expand into adjacent businesses and puts in place a third and critical element in our new after-market services business to benefit industrial customers, consumers and the environment. PNS’s talented employees expand the breadth of our expertise in this rapidly growing industry. With 22 years of experience in repair, refurbishment, recycling and responsible disposition of IT products, PNS joins Avnet’s two other lifecycle management operations that specialize in cable TV equipment repair and cell phone repair, in serving the electronics reverse logistics industry.”

GBQ Consulting provided financial advisory services and Schottenstein Zox & Dunn acted as legal counsel to PNS in connection with this transaction. (Read more)