Arrow Acquires Nu Horizons - Analyst Blog

Arrow Electronics, Inc. (ARW) recently completed the acquisition of Nu Horizons Electronics for $7.00 per share, or a total of  $130 million.

Headquartered in Melville, NY, 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 650 people.

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 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, Arrow acquired Mississippi-based Intechra, which provides comprehensive end-to-end IT asset disposition services.

Intechra's services include legislative compliance, data security and destruction, risk management, redeployment, remarketing, lease return, logistics management and environmentally responsible recycling of all types of information technology. Intechra provides fully customized information technology asset disposition (ITAD) services to many Fortune 1000 customers throughout the world.

Employing approximately 300 employees, Intechra generated sales of $75 million in the most recent fiscal year. The transaction, expected to close by the end of December, is expected to become accretive to earnings in the first full year of operations by 3–5 cents. 

Management at Arrow believes that the addition of Intechra is in sync with the company's strategy to provide comprehensive services across the entire product lifecycle for its suppliers and customers.