September 14, 2023 /SemiMedia/ -- WT Microelectronics Co., Ltd. announced today that it has signed a final agreement to acquire 100% of Future Electronics in an all-cash transaction of US$3.8 billion.

Future Electronics is a leading global distributor of electronic components headquartered in Canada, with revenue of $2.9 billion, operating income of $228 million and net income of $184 million for the six months ended June 30, 2023. The company has approximately 5,200 employees in 47 countries.

Future Electronics said the merger would have no impact on the jobs and employment contracts of its global employees.

"We will benefit by operating from 2 headquarters. Our ability to hire talent in both regions gives us access to an unprecedented talent pool. Two cultures will share and learn from one another. The unique, though proven business model presents us all with tremendous growth opportunities." Future said.

Transaction Benefits

  • Global Electronic Components Distributor: The transaction will enable the combined company to provide seamless cross-border services to customers around the globe, achieve geographic diversification (given WT Microelectronics has no presence in the Americas and EMEA) and 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.

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.