U.S. electronics company Avnet Inc. has agreed to buy Premier Farnell PLC for GB P691 million ($907 million) beating a previous bid for one of the makers of the Raspberry Pi computer by Switzerland’s Daetwyler Holding AG (last month they agreed to buy the British company for GBP 615 million).
Last Thursday, Premier Farnell withdrew its earlier recommendation of the Daetwyler offer.
Analysts at Peel Hunt were quoted as saying that “buying Premier Farnell makes strategic sense for Avnet, giving it access to customers at the earliest stages of the design and manufacturing process, and highlights perhaps the attractiveness of U.K. assets when sterling is depreciated.”
Avnet Chief Executive Bill Amelio said “This acquisition will significantly strengthen Avnet’s digital footprint world-wide,. The convergence of Premier Farnell’s innovative online services with Avnet’s world-class supply chain will create customer service unparalleled in the industry,” he added.
Avnet offered to pay 185 pence a share for Premier Farnell, an improvement on the 165 pence a share deal agreed with Daetwyler.
Recently Premier Farnell’s highest profile contract was to build and distribute the Raspberry Pi. It released its first product in 2012 and now has four models – the cheapest is the $5 Pi Zero with the most expensive being the Pi 2 and Pi 3, both of which cost $35.
Avnet reported revenue of $6.17 billion for the quarter ended April 2.
Premier Farnell reported GBP 778.5 million in revenue for the fiscal year ended January 2016. The division overseeing its Raspberry Pi operations reported 16% of that, ie. GBP 125.4 million.
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