Bangalore: US-based electronics distributor Avnet announced the completion of its acquisition of British competitor Premier Farnell in an all cash deal that would be valued at over USD 850 million, a press release issued by the company said.
The joint entity would create a distribution model that would support customers at every stage of the product lifecycle, officials of the company said.
Chief Executive Officer of Avnet William Amelio said “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.
It may be recalled that Avnet had recently sold off its technology solutions group to Florida-based Tech Data Corp for an estimated sum of $ 2.6 billion in a cash plus shares deal valued at about # 200 million. The transaction is said to close by mid-2017 and Avnet has projected a gain in its share values by that time.
“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. 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,” Amelio added.
On its part, 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.
Premier Farnell is 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, including India.