On September 14, 2023, WT Microelectronics Co., Ltd. has signed a definitive agreement to acquire Future Electronics Inc. for an enterprise value of $5.2 billion (US$3.8 billion) in an all-cash deal. This strategic acquisition aims to merge WT Microelectronics’ and Future Electronics’ complementary strengths, creating sustainable value for stakeholders and enhancing the global electronic components distribution sector.

Future Electronics, based in Canada, reported revenues of $3.9 billion (US$2.9 billion) for the first half of 2023. The company boasts a global presence with 5,200 employees across 47 countries, offering a wide range of electronic components and supply chain services.

The acquisition is set to provide cross-border services, geographic diversification, and a full range of products and services to the combined entity’s customers. It promises to bolster supply chain resilience, align shared corporate cultures, and improve WT Microelectronics’ financial performance, with expectations of the deal being accretive to earnings per share from the first full financial year after closing.

The purchase will be funded through cash and debt financing from DBS Bank, with closure anticipated in the first half of 2024, pending regulatory approvals. Citigroup, Skadden, Arps, Slate, Meagher & Flom LLP, Osler, Hoskin & Harcourt LLP, and Tsar & Tsai Law Firm are advising WT Microelectronics, while Canaccord Genuity Corp. and Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. are advising Future Electronics.