Sale of Observatory Crest Pty Ltd to Arrow Electronics Inc
We acted for the founding shareholders of Australian and New Zealand distributor Observatory Crest on the sale of the business to giant multinational distributor Arrow Electronics Inc., a NYSE-listed Fortune 500 buyer. This deal demonstrates the attraction of Australian technology companies to overseas (particularly US) buyers.
Observatory Crest represents vendors including F5 Networks, HP ArcSight, Axway, HP Fortify, MobileIron, Palo Alto Networks, HP TippingPoint, AlgoSec, Pure Storage, FireEye, Arbor Networks, BlueCat Networks and SecureSpace. Arrow represents vendors including Check Point Software Technologies, Exinda Networks, Gigamon, IBM Australia, NCP, Skybox Security and Vormetric. Arrow is one of the largest distributors in the world, with US21.4 billion in sales and net income of US399.4 million
We navigated the founding shareholders through the sale process and negotiated the best possible risk allocation outcome for our client. Particular focus was placed on the warranty and indemnity regime and the principles underpinning the deferred payment and earn out.