WT comes to Europe in $3.8bn Future Electronics deal

WT comes to Europe in $3.8bn Future Electronics deal

Business news |
By Nick Flaherty

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WT Microelectronics in Taiwan has bought Future Electronics in Canada to boost its position as the world’s fourth largest distributor.

While the $3.8bn cash deal is well under the Future Electronics 2022 turnover of $5.0bn, it gives WT access to Europe and North America and mitigates the risks of the US-China trade war with a dual-headquartered structure in Taipei and Montreal.

Adding Future’s $5.0bn turnover to WT’s $17.1bn 2022 turnover would put the business in reach of the third largest distributor, fellow Taiwanese distributor WPG at $24.1bn, and even Avnet on $26.32bn. Arrow remains the largest distributor with a turnover of $37.1bn in 2022, but the market is likely to shake out as a result of the economic slowdown and growing inventories.

“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 centres will continue to operate and add value to the organization. We are excited to invite [Future Chairman, CEO and President] 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,” said Cheng.

“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 Baig. “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.”

WT says the transaction will enable the combined company to provide seamless cross-border services to customers around the globe and geographic diversification, given that WT Microelectronics has no presence in the Americas and EMEA. This will also expand the application engineering expertise and logistics management services.

The combined company is also aiming to boost its market intelligence to provide the entire value chain with greater resilience. The deal is expected to close in the first half of 2024, subject to customary closing conditions including the receipt of required regulatory approvals.;




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