Behemoth electronics distributor Avnet has announced that it has completed its acquisition of Premier Farnell in an all cash merger.
The distributor initially announced that it had reached an agreement with Premier Farnell's board of directors on July 28. Under the terms of the agreement Avnet will pay £1.85 per share, which equates to an equity value of approximately £691 million.
William Amelio, Chief Executive Officer of Avnet said:
The combination of Premier Farnell with Avnet's components business will create a truly unique distribution model that supports customers at every stage of the product lifecycle. By pairing our deep expertise in large volume broadline distribution with Premier Farnell's specialization in proof of concept and design, we can offer true end-to-end solutions that accelerate a customer's time-to-market and moves their products seamlessly from prototype through to volume production. As technology reaches deeper into more products and innovation proliferates through the internet of things, the ability to reach a wider base of engineers earlier in the design process will be critical to our future growth and success.
Premier Farnell reported that its shareholders approved the acquisition with 99.9% of shareholders votes cast. Premier has also received all regulatory approvals. Avnet expects the merger to generate annual synergies of approximately $70 million to $80 million once the two companies are combined.
United Kingdom, Premier Farnell, a global distributor of electronic components headquartered in Leeds, U.K., leverages a digital platform to support innovators and engineers with products, services, and development software. The company's online community includes more than 430,000 members in 36 countries. In EBN's 2015 Top Global Electronics Distributor report, Premier Farnell took the 10th spot $1.4 billion in revenue, compared to Avnet's first place ranking with $27.3 billion in revenue.
Avnet has been in flux for much of the summer and fall. This move comes on the heels of Avnet's shedding of its Technology Solutions operating group, which the company sold to Tech Data Corp last month. In addition, William Amelio was appointed CEO of Avnet in September, after his stint as interim in the position.
— Hailey Lynne McKeefry, Editor in Chief, EBN