WT Microelectronics buys Future in $3.8 billion deal
Taiwanese-based distributor WT Microelectronics is buying Future Electronics for US$3.8 billion in an all-cash transaction.
The transaction is anticipated to deliver long-term, sustainable value to all relevant stakeholders including customers, suppliers, employees, and shareholders through the combination of two highly complementary organisations.
“The acquisition marks a milestone for WT Microelectronics in expanding our global footprint,” Eric Chang, Chairman and CEO told a press conference in Taipei. He added that the deal would virtually double his company’s customer base.
It will also close the competitive gap with the top two global component distributors, Arrow Electronics and Avnet. Cheng said that the merged entity would have annual revenue surpassing US$24 billion.
The deal reduces WT Microelectronics’ reliance on the Asian market. Cheng expects the revenue contribution from Asia to account for 57 per cent of the total, with 16 per cent from Europe and 27 per cent from the US.
Montreal-based Future Electronics generated revenues of US$2.9 billion, operating income of US$228 million, and net income of US$184 million for the six months ending June 30, 2023.
Future Electronics has been up for sale following the resignation of Founder, Chairman and CEO Robert Miller following allegations of paying minors for sex. He denies the allegations.
“This is transformational for WT Microelectronics and Future Electronics and important for the electronic component ecosystem,” said Cheng. “Future Electronics has an experienced and deep management team and a very talented employee base, and is highly complementary to WT Microelectronics in terms of product offerings, customer coverage, and global footprint. Future’s management team, all of their employees worldwide, and all locations and distribution centres will continue to operate and add value to the organisation.
Future Electronics Chairman and CEO Omar Baig will join WT Microelectronics’ Board of Directors once the acquisition is closed.