Avnet sees Dätwyler's bid for Raspberry Pi slinger, raises to £868m
Americans arrive late to spoil Swiss acquisition of Premier Farnell
Avnet, the American technical component distributor, has come in at the 11th hour to outbid an existing offer for Premier Farnell, distributors of the Raspberry Pi.
Farnell was all set to be sold to Swiss group Dätwyler Holding for £792m, including debt, but a new offer from Avnet with an enterprise value of £868m has now been accepted and recommended.
The transaction values the entire share capital of Premier Farnell at £691m, which itself represents a premium of 69.3 per cent on Premier Farnell's share price on 13 June 2016, when Daetwyler announced its offer.
A letter from the board of Leeds-based Premier Farnell had previously endorsed the Dätwyler deal, with chairman Valerie Gooding applauding it on the grounds that both companies shared "very similar strategic values and are highly complementary in terms of product range."
Despite that, the board has now withdrawn that recommendation and instead stumped up for Avnet's cash offer, which delivers a premium of 12.1 per cent over Daetwler's offer. In today's announcement, Gooding stated both companies shared "very similar strategic values and are highly complementary in terms of product range, distribution channels and geographic footprint."
"The enhanced offerings brought about by a combination of the two businesses," the announcement continues, "is expected to generate revenue synergies from cross-selling and line-fill effects, as well as utilizing the strength of the Combined Group's procurement positions."
While it is difficult to understand what this means, we parse it as an expression of enthusiasm for the deal.
Bill Amelio, Avnet's interim CEO, said: “This acquisition will significantly strengthen Avnet’s digital footprint worldwide. The convergence of Premier Farnell’s innovative online services with Avnet’s world class supply chain will create customer service unparalleled in the industry. The talented team of people at Premier Farnell will allow Avnet to enhance our customer experience and accelerate our global growth.” ®
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