Arrow North American Computer Products (NACP) serves seven distinct customer segments with the broadest range of computer products and design, materials management, configuration, and integration services. Continuing its expansion in 2000, NACP completed the acquisitions of Wyle Systems, a division of the VEBA Electronics Group, and MOCA, formerly the open computing alliance of Merisel, Inc. These acquisitions strengthened Arrow’s presence in two growing markets–OEMs who purchase computer products for industrial applications and value-added resellers who purchase servers, workstations, enterprise software, and configuration services. Strengthening our focus on these growing and profitable customer segments, while decreasing our dependence on the desktop PC and commodity periph-erals markets, has been our strategy and the goal of our acquisitions for the past several years. In the short term, this is resulting in declining sales for the total business, although we are building sales and profits in our targeted customer segments.

Increasing use of computer products in original equipment manufacturing has been a growing trend in the industry. For many years, Arrow Electronics has had dedicated sales and marketing teams focused on serving OEMs and systems integrators who purchase computer products for industrial applications. Our acquisition of Wyle Systems created an opportunity to expand our OEM sales and marketing teams and to offer enhanced computer products design, materials management, and integration services to OEM customers across North America. The Arrow/Wyle Computer Products Group–the combination of Arrow’s Industrial Computer Products Group with Wyle’s Systems Division–opened for business with an expanded line card and services offering. Constant changes in technology and shorter computer product life cycles demand specialized expertise, and the Arrow/Wyle Computer Products Group offers more design, materials management, end-of-life, and manufacturing services than any other computer products distributor.

Servers, workstations, and storage products provide the critical infrastructure for the Internet and for business information management systems. Our strategy has been to acquire companies that concentrate on specific suppliers and applications in the mid-range computing market. The Wyle acquisition expanded Arrow’s mid-range offering with the addition of the Technology Solutions Division, a team that delivers and supports high-end Compaq enterprise computing and storage solutions. Late in 2000, we also acquired MOCA, one of only three distributors authorized to sell Sun Microsystems products. MOCA delivers the full range of Sun enterprise solutions, including mid-range computers, servers, workstations, software, storage area networks, Solaris operating systems, and professional services.

MOCA and Wyle’s Compaq team joined our mid-range computing line-up, which includes Support Net, Consan, and SBM. With our acquisitions and our organic growth, Arrow has become North America’s largest distributor to the fast-growing mid-range computing market.

Arrow North American Computer Products has emerged as the leading specialist in computer products and services. From value-added resellers, to Internet services providers, to OEMs, Arrow’s computer products teams deliver the latest technology information, design advice, and materials management and manufacturing support.