-
- News
- Books
Featured Books
- smt007 Magazine
Latest Issues
Current IssueComing to Terms With AI
In this issue, we examine the profound effect artificial intelligence and machine learning are having on manufacturing and business processes. We follow technology, innovation, and money as automation becomes the new key indicator of growth in our industry.
Box Build
One trend is to add box build and final assembly to your product offering. In this issue, we explore the opportunities and risks of adding system assembly to your service portfolio.
IPC APEX EXPO 2024 Pre-show
This month’s issue devotes its pages to a comprehensive preview of the IPC APEX EXPO 2024 event. Whether your role is technical or business, if you're new-to-the-industry or seasoned veteran, you'll find value throughout this program.
- Articles
- Columns
Search Console
- Links
- Events
||| MENU - smt007 Magazine
WT Microelectronics to Acquire Future Electronics for $3.8 Billion
September 14, 2023 | Future ElectronicsEstimated reading time: 3 minutes
WT Microelectronics Co., Ltd. announced that it has entered into a definitive agreement to acquire 100% of the shares of Future Electronics Inc. for an enterprise value of US$3.8 billion in an all-cash transaction. The strategic 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 organizations.
Future Electronics, a Canadian-based leading global distributor of electronic components, generated revenues of US$2.9 billion, operating income of US$228 million, and net income of US$184 million for the six months ended on June 30, 2023. The privately-held company, with approximately 5,200 employees in 47 countries, provides customers with application engineering expertise and supply chain services covering a portfolio of electronics from industry leading suppliers.
“This is transformational for WT Microelectronics and Future Electronics and important for the electronic component ecosystem,” said Eric Cheng, Chairman and CEO of WT Microelectronics. “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 centers will continue to operate and add value to the organization. We are excited to invite Mr. Omar Baig to join WT Microelectronics’ Board of Directors post-closing and look forward to working with him and his immensely talented colleagues around the world to build together a best-in-class electronic components distributor.”
“We are excited to join WT Microelectronics and believe that this transaction will benefit all our stakeholders. Our two companies share a common culture, driven by a rich entrepreneurial spirit that will empower our talented employees globally”, said Omar Baig, President, CEO and Chairman of Future Electronics. “This combination is a great opportunity for WT Microelectronics and Future Electronics to jointly form a world-class industry leader, and allows us to continue our long-term strategic plan to offer the highest level of services to our customers, which we have been doing for the past 55 years.”
Transaction Benefits
Global Electronic Components Distributor: The transaction will enable the combined company to (i) provide seamless cross-border services to customers around the globe, (ii) achieve geographic diversification (given WT Microelectronics has no presence in the Americas and EMEA) and (iii) deliver a full range of product offerings, application engineering expertise, as well as superior logistics management services.
Supply Chain Resilience that Benefits Suppliers and Customers: The transaction will further enhance the combined company’s strengths in supply chain solutions through differentiated and comprehensive product line cards, extended customer coverage, and unmatched market intelligence, which will benefit the entire value chain with greater resilience.
Forges a Stronger Global Team with Shared Company Culture and Dual Headquarter Structure: The transaction brings together two companies that share a common entrepreneurial spirit, long tenure, and commitment to providing superior supply chain services to partners globally. With a dual-headquartered structure in Taipei and Montreal, employees of both companies are expected to benefit from substantial opportunities for growth.
Delivers Compelling Financial Benefits: The transaction is expected to improve WT’s long-term financial performance with diversified businesses across products, more balanced geographic mix, and higher operating margins. The transaction is also expected to be accretive to WT Microelectronics’ EPS from the first full financial year post-closing.
Approvals and Financing
WT Microelectronics intends to fund the transaction with a combination of cash on hand and committed debt financing provided by DBS Bank. The transaction has been unanimously approved by WT Microelectronics’ Board of Directors and Future Electronics’ Board of Directors, and is expected to close in the first half of 2024, subject to customary closing conditions including the receipt of required regulatory approvals.
Advisors
Citigroup is serving as the exclusive financial advisor to WT Microelectronics, with Skadden, Arps, Slate, Meagher & Flom LLP, Osler, Hoskin & Harcourt LLP, and Tsar & Tsai Law Firm as its legal advisors. Canaccord Genuity Corp. is serving as the exclusive financial advisor to Future Electronics with Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. as its legal advisor.
Suggested Items
I-Connect007 Editor’s Choice: Five Must-Reads for the Week
05/03/2024 | Nolan Johnson, I-Connect007This week’s most important news is strategic—and telling. When one puts together the IPC industry reports, we simply have to include the recent conversation with Shawn DuBravac and Tom Kastner. On the design side, check out the latest “On The Line With…” podcast featuring Brad Griffin from Cadence Design Systems, discussing SI and PI in the realm of intelligent system design.
IMI Welcomes New CEO
05/03/2024 | IMIIntegrated Micro-Electronics, Inc. (IMI),The IMI Board of Directors announced, in a disclosure dated April 25, 2024, the appointment of Louis Sylvester Hughes, Chief Executive Officer (CEO).
Electronics Industry Sentiment Rose in April, Hitting New High
05/02/2024 | IPCApril 2024 marked the third consecutive month of sentiment growth among electronics manufacturers. When asked if they expected labor costs for hourly workers to rise over the next month, manufacturers in the United States, Mexico, and Europe predicted a five percent increase, while manufacturers in Asia predicted a slightly lower four percent increase.
iNEMI Names Grace O'Malley CTO
05/02/2024 | iNEMIThe Board of Directors of the International Electronics Manufacturing Initiative (iNEMI) has named Grace O'Malley Chief Technical Officer (CTO).
ZESTRON Academy Launches 2024 Advanced Packaging & Power Electronics Webinar Series
05/01/2024 | ZESTRONZESTRON, the leading global provider of high-precision cleaning products, services, and training solutions in the electronics manufacturing and semiconductor industries, proudly announces the launch of its highly anticipated webinar series on Advanced Packaging & Power Electronics, a webinar series on the latest innovations, cleaning, and corrosion challenges.