Arrow Electronics Inc. (ARW) recently announced that it will acquire Nu Horizons Electronics (NUHC) for $7.00 per share aggregating $130 million.
Headquartered in Melville, N.Y., Nu Horizons Electronics is a leading global distributor of advanced technology semiconductor, display, illumination, and power solutions to a wide variety of commercial original equipment manufacturers (OEMs) and electronic manufacturing services providers (EMS). The company employs 700 people.
The offer price of $7.00 is double of Nu Horizons last trading price of $3.49. The acquisition news catapulted the stock price to $6.89.
The offer price of $7.00 is double of Nu Horizons last trading price of $3.49. The acquisition news catapulted the stock price to $6.89.
Nu Horizon generated $671 million of sales in fiscal 2010. The transaction is expected to be accretive to earnings by 5 to 10 cents in the first full year of operations. The transaction, subject to the approval of Nu Horizons' shareholders as well as customary regulatory approvals, is expected to close during the fourth quarter of 2010.
The acquisition will enable Arrow to expand its global capabilities in the emerging Asia-Pacific region. Nu Horizons has sales facilities in more than 50 locations across North America, Asia, and Europe. The company caters to a wide variety of end-markets including industrial, military, networking, telecommunications, and data communications.
Earlier this month, Arrow completed the acquisition of Shared Technologies Inc., a leading North American unified communications and managed services provider. The acquisition is expected to be accretive to earnings in the range of 10 to 12 cents per share in the first full year of operation. In the second quarter of 2010, Arrow completed the acquisition of reverse logistics services provider–Converge, and parts catalog retailer – Verical Inc.
As IT spending picks up with signs of revival, both Arrow and rival Avnet Inc. (AVT) are gearing up to expand their footprint. In July, rival Avnet Inc. completed three acquisitions – Bell Microproducts with operations in the Americas and EMEA, Tallard Technologies in Latin America, and Unidux in Japan.
ARROW ELECTRONI (ARW): Free Stock Analysis Report
AVNET (AVT): Free Stock Analysis Report
NU HORIZONS ELE (NUHC): Free Stock Analysis Report
Zacks Investment Research
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