Analysis
Nu Horizons Acquires German distributor Dacom-Süd Electronic Vertriebs
Nu Horizons Electronics Corp. (NASDAQ:NUHC), a leading global distributor of advanced technology semiconductor, display, illumination and system solutions, today announced its acquisition of Dacom-Süd Electronic Vertriebs GmbH, a franchised electronic component distributor, based in Munich, Germany.
ThisUnder the terms of the agreement, Dacom-Süd has become a wholly-owned subsidiary of Nu Horizons Electronics. Previous Dacom-Süd owner, Inge Merl, will remain as Managing Director for the subsidiary.
Nu Horizons paid approximately $2.7 million in cash for this acquisition. Dacom-Süd had approximately $6.2 million in sales for the twelve-month period ended December 31, 2006 and the acquisition is expected to be accretive to Nu Horizons’ current fiscal year net income.
“We are very pleased to broaden our reach into Germany’s distribution market through the acquisition of Dacom-Süd,” said Dave Bowers, president of Nu Horizons Distribution Division. “Dacom-Süd employs a similar business philosophy of carrying a limited line card and focus on application support for customers together with effective demand creation for suppliers.”
Thomas Reisinger, Managing Director of Nu Horizons Electronics GmbH added, “Dacom Süd brings additional experienced and technically well-qualified staff to our business while expanding our customer base in Germany. The company has done an excellent job in representing Clare, Micrel and SMSC franchises and will continue to do so as we go forward together.”