Today (September 14), WT Microelectronics Inc. announced that it has signed a definitive agreement to acquire 100% of Future Electronics Inc. ("Future Electronics") for an all-cash transaction with an enterprise value of US$3.8 billion.
Screenshot source: Future Electronics
"This is a game-changer for WT and Future Electronics, and important for the electronic component ecosystem," said John Chinson, Chairman and CEO of WT. "Future Electronics has an experienced and strong management team and talented workforce that complements WT in terms of product offerings, customer coverage and global footprint. Future's management team, all employees worldwide, and all locations and distribution centers will continue to operate and add value to the organization. We are delighted to have Mr. Omar Baig join WT Microelectronics' Board of Directors upon completion of the transaction and look forward to working with him and his talented colleagues around the world to build a premier distributor of electronic components." â€
"We are delighted to join WT Microelectronics and believe this transaction will benefit all of our stakeholders. Our two companies share a culture driven by a rich entrepreneurial spirit that empowers our talented employees around the world," said Omar Baig, President of Future Electronics, CEO and Chairman. "This merger is a great opportunity for WT Microelectronics and Future Electronics to work together to build a world-class industry leader and enable us to continue executing on our long-term strategic plan to provide the highest level of service to our customers, which we have been doing for the past 55 years."
The industry pointed out that Future Electronics has been rumored to have been sold for a long time, domesticallyICThere are many contacts with it, but finally due to financial and price factors and the break, the semiconductor boom began to freeze in the second half of last year, terminal inventory increased sharply, many manufacturers at the request of the original factory, but also had to help stock up on inventory, coupled with the rise in interest rates in the United States, interest expenses increased, financial pressure doubled, may be an important factor to accelerate the merger and acquisition.
Founded in 1968 and headquartered in Montreal, Canada, Future Electronics has 169 branches in 44 countries in the Americas, Europe, Asia, Africa and Oceania. According to the research and research agency Gartner's 2019 global semiconductor channel sales revenue ranking, the world's first is American Arrow (USAI), the second largest United Nations Assembly, American Avnet and WT ranked fourth, and Future Electronics ranked seventh.
This is another important milestone for WT to expand its global footprint following the acquisition of Singapore-based Merchant Technologies, which in April last year passed through its 100% owned subsidiary, WT Semiconductor Pte. Ltd., which acquired a 100% stake in Singapore Merchant Century Technology for S$1.93 per share in cash and a total amount of approximately S$232.2 million, completed the relevant procedures at the end of the year, through which WT was able to strengthen its product line and expand its business rapidly.
After the acquisition of Future Electronics, WT will squeeze into the top three in the global rankings and shake other competitors, but one of its competitors, WPG, is also the top three shareholders of Wen Ye, with 177,000 shares or 19.97% shares, and the second largest is Xiangshuo with 171,000 shares and 19.28%.