Arrow Electronics Sells ECS Business for $1B

TL;DR

Arrow Electronics sold its ECS biz to Tech Data for $1B, closing out a major strategic move.

AI Summary

On April 1, 2024, Arrow Electronics, Inc. entered into a material definitive agreement related to its previously announced sale of its enterprise computing solutions (ECS) business to Tech Data Corporation for approximately $1.0 billion. This filing also includes financial statements and exhibits related to this transaction.

Why It Matters

This transaction marks a significant divestiture for Arrow Electronics, potentially reshaping its business focus and financial structure.

Risk Assessment

Risk Level: medium — The sale of a significant business segment introduces integration risks for the buyer and strategic risks for Arrow Electronics regarding its future direction.

Key Numbers

• $1.0B — Sale Price (Amount Arrow Electronics received for its ECS business from Tech Data.)

Key Players & Entities

• Arrow Electronics, Inc. (company) — Registrant
• Tech Data Corporation (company) — Acquirer of ECS business
• 1.0 billion (dollar_amount) — Sale price of ECS business
• April 1, 2024 (date) — Date of material definitive agreement

FAQ

Key Financial Figures

• $1 — nge on which registered Common Stock, $1 par value ARW New York Stock Exchange
• $500,000,000 — s, Inc. (the "Company") issued and sold $500,000,000 in aggregate principal amount of its 5.

Filing Documents

• tm2411435d1_8k.htm (8-K) — 31KB
• tm2411435d1_ex1-1.htm (EX-1.1) — 132KB
• tm2411435d1_ex4-2.htm (EX-4.2) — 150KB
• tm2411435d1_ex5-1.htm (EX-5.1) — 20KB
• tm2411435d1img001.jpg (GRAPHIC) — 4KB
• 0001104659-24-045811.txt ( ) — 576KB
• arw-20240401.xsd (EX-101.SCH) — 3KB
• arw-20240401_lab.xml (EX-101.LAB) — 33KB
• arw-20240401_pre.xml (EX-101.PRE) — 22KB
• tm2411435d1_8k_htm.xml (XML) — 3KB

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Item 1.01. Entry into a Material Definitive Agreement. Offering of the Notes On April 10, 2024, Arrow Electronics, Inc. (the "Company") issued and sold $500,000,000 in aggregate principal amount of its 5.875% notes due 2034 (the "Notes") in a registered public offering pursuant to an effective Registration Statement on Form S-3 (File No. 333-277564) (the "Registration Indenture The Notes were issued pursuant to the indenture, dated as of March 1, 2024 (the "Base Indenture"), between the Company and U.S. Bank Trust Company, National Association, as trustee (the "Trustee"), as supplemented by the first supplemental indenture, dated as of April 10, 2024 (the "First Supplemental Indenture" and, together with the Base Indenture, the "Indenture"), between the Company and the Trustee. The Base Indenture, the First Supplemental Indenture and the form of the Note are filed as Exhibits 4.1, 4.2 and 4.3, respectively, and are each incorporated herein by reference. The Base Indenture, the First Supplemental Indenture and the form of the Note are also filed with reference to, and are hereby incorporated by reference in, the Registration Statement. Terms of the Notes The Notes bear interest at a rate of 5.875% per annum, payable semiannually on April 10 and October 10 of each year, commencing on October 10, 2024, and mature on April 10, 2034. The Notes are redeemable at the Company's option, in whole or in part, at any time and from time to time, at the applicable redemption price described in the Indenture. The Notes are the Company's general unsubordinated and unsecured indebtedness, and are subject to usual and customary covenants, including restrictions on liens, sale/lease-back transactions and mergers, consolidations or sales of substantially all of the Company's assets. Upon the occurrence of a Change of Control Triggering Event, as defined in the Indenture, the Company will be required to offer to

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Item 8.01. Other Events. Underwriting Agreement The Notes were sold pursuant to an Underwriting Agreement, dated as of April 1, 2024 (the "Underwriting Agreement"), by and among the Company and J.P. Morgan Securities LLC, BNP Paribas Securities Corp. and HSBC Securities (USA) Inc., as representatives of the several underwriters named therein. The Underwriting Agreement sets forth the terms and conditions pursuant to which the Company agreed to sell the Notes to the underwriters and the underwriters agreed to purchase the Notes from the Company for resale to the public in the offering. The Underwriting Agreement is attached as Exhibit 1.1 hereto and is incorporated herein by reference. The Underwriting Agreement is also filed with reference to, and is hereby incorporated by reference in, the Registration Statement. Legal Opinion Letter In connection with the offering, a legal opinion letter of Latham & Watkins LLP regarding the validity of the Notes is attached as Exhibit 5.1 hereto. The legal opinion letter is also filed with reference to, and is hereby incorporated by reference in, the Registration Statement.

Financial Statements and Exhibits

Financial Statements and Exhibits. (d) Exhibits Exhibit Number Description 1.1 Underwriting Agreement, dated as of April 1, 2024, by and among the Company and J.P. Morgan Securities LLC, BNP Paribas Securities Corp. and HSBC Securities (USA) Inc., as representatives of the underwriters. 4.1 Indenture, dated as of March 1, 2024, by and between the Company and U.S. Bank Trust Company, National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Company's Registration Statement on Form S-3 dated March 1, 2024, Commission File No. 333-277564). 4.2 First Supplemental Indenture, dated as of April 10, 2024, by and between the Company and U.S. Bank Trust Company, National Association, as trustee. 4.3 Form of 5.875% Note due 2034 (included in Exhibit 4.2). 5.1 Opinion of Latham & Watkins LLP. 23.1 Consent of Latham & Watkins LLP (included in their opinion filed as Exhibit 5.1). 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ARROW ELECTRONICS, INC. Date: April 10, 2024 By: /s/ Carine L. Jean-Claude Name: Carine L. Jean-Claude Title: Senior Vice President, Chief Legal Officer and Secretary

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View this 8-K filing on SEC EDGAR