Future Electronics sold for $5B to Taiwan semi disty

Future Electronics Inc. has been sold for more than $5 billion to a Taiwanese semiconductor distributor. WT Microelectronics Co. says it has signed an agreement to acquire 100 per cent of the company’s shares for US$3.8 billion – more than $5 billion Canadian – in an all-cash deal expected to close in the first half of 2024.

Future Electronics, which Quebec’s business registry lists as wholly owned by Robert Miller, is a global distributor of electronics components that employs 5,200 workers across 47 countries.

“This is transformational for WT Microelectronics and Future Electronics and important for the electronic component ecosystem,” said Eric Cheng, Chairman and CEO of WT Microelectronics. “Future Electronics has an experienced and deep management team and a very talented employee base, and is highly complementary to WT Microelectronics in terms of product offerings, customer coverage, and global footprint. Future’s management team, all of their employees worldwide, and all locations and distribution centers will continue to operate and add value to the organization. We are excited to invite Mr. Omar Baig to join WT Microelectronics’ Board of Directors post-closing and look forward to working with him and his immensely talented colleagues around the world to build together a best-in-class electronic components distributor.”

Co-founded by Miller in 1968, the Montreal-based corporation says it generated US$2.9 billion in revenue and US$184 million in profits in the first half of 2023.

“We are excited to join WT Microelectronics and believe that this transaction will benefit all our stakeholders. Our two companies share a common culture, driven by a rich entrepreneurial spirit that will empower our talented employees globally”, said Omar Baig, President, CEO and Chairman of Future Electronics. “This combination is a great opportunity for WT Microelectronics and Future Electronics to jointly form a world-class industry leader, and allows us to continue our long-term strategic plan to offer the highest level of services to our customers, which we have been doing for the past 55 years.”

Transaction Benefits

• Creates a World-Class Global Electronic Components Distributor: The transaction will enable the combined company to (i) provide seamless cross-border services to customers around the globe, (ii) achieve geographic diversification (given WT Microelectronics has no presence in the Americas and EMEA) and (iii) deliver a full range of product offerings, application engineering expertise, as well as superior logistics management services.
• Provides Greater 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.