Electronics distributor Avnet, Inc. has increased its offer to
acquire fellow distributor Premier Farnell, in an attempt to squash a
competing bid placed by Datwayler Technical Components UK Limited.
The new bid calls for an all-cash offer of about $765.7 million
(about $2.05 per share) for Premier Farnell, a 12.1% premium over the
offer from Datwayler (at about $1.83 per share). Based in the U.K.,
Premier Farnell is a distributor of electronic components and related
products to system design companies.
Avnet believes the acquisition will strengthen its digital footprint
worldwide, and the combination of Premier Farnell’s online services with
Avnet’s supply chain will offer a new level of service for its
customers. Avnet says while Premier Farnell’s customers will gain access
to larger supply chain services, Avnet customers will be able to do
more technical research online through Premier Farnell’s capabilities.
“In addition to deepening our customer base, this acquisition will
enhance our go-to-market strategy as we target the industrial Internet
of Things with edge-to-enterprise products and solutions,” says Gerry
Fay, president of Avnet’s Electronics Marketing, Worldwide.
The acquisition still has many hurdles to go through including
approval by Premier Farnell shareholders, the European Union, U.S. and
Israel.
http://electronics360.globalspec.com/article/7070/avnet-ups-its-bid-to-acquire-premier-farnell
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