Avnet Outbids Daetwyler for Raspberry Pi Maker Premier Farnell
Jul 29 2016
Combining the businesses should lead to procurement savings and also increase revenue as the companies sell each other's products, the companies said.
Avnet will pay 691 million British pounds in cash, about $900 million, for Premier Farnell, a global distributor of electronic components headquartered in Leeds, England.
USA tech firm Avnet has made a takeover offer of 185 pence per share in an all-cash offer for Premier Farnell, valuing the company at £868m.
Phoenix-based electronics distributor Avnet has agreed to buy Premier Farnell, topping a prior bid from Switzerland's Daetwyler.
Daetwyler had planned to merge Premier Farnell with its Daetwyler Technical Components UK division, resulting in a global technical parts business with about 4,900 staff and expected revenues of about £1.3bn.
"It is a capable little device that enables people of all ages to explore computing", the company says about the Raspberry Pi on its website. Different versions of the stripped-down, non-enclosed computers are listed on the company's website at prices ranging from roughly $5 to $42 or so, after conversion from pounds. Those figures equate to almost $82 million in pretax income and $1.4 billion in revenue, reflecting currency-exchange values in late January, before the pound slumped following the Brexit vote. Its customers gain access to an extensive suite of supply chain services", said Gerry Fay, president of Avnet Electronics Marketing, Worldwide, "allowing them to ramp new products to production volumes.
The terms of the proposed acquisition are further described in the announcement released today in accordance with Rule 2.7 of the UK Takeover Code and available on Avnet's website at www.ir.avnet.com.
Before Daetwyler made its offer on June 14, Premier Farnell shares had fallen about 30 percent since September, when the company cut its dividend and sold a non-core unit amid falling profit and slower sales growth in its key United Kingdom and North America markets.