Arrow Electronics acquires RF, Wireless & Power division of Richardson Electronics
Richardson's product set includes systems for infrastructure and wireless networks, power management and alternative energy markets.
MELVILLE, N.Y. -- Arrow Electronics, Inc. (NYSE: ARW) has signed a definitive agreement pursuant to which Arrow will acquire all of the assets and operations of the RF, Wireless and Power Division of Richardson Electronics, Ltd. (Richardson RFPD).
Richardson RFPD is a global component distributor and provider of engineered platforms serving the global radio frequency (RF) and wireless communications market. The company's product set includes systems for infrastructure and wireless networks, power management and alternative energy markets. The company has a presence in markets including wireless infrastructure, digital broadcast, microwave radio, military and aerospace, and satellite communications.
The Richardson RFPD distributor line card consists of more than 80 RF and wireless component manufacturers with products includes RF power transistors, passive and RF connector products, low-power components, amplifiers, digital broadcast components. Richardson RFPD also offers its customers an array of value-added services and engineered solutions to meet their needs.
“This acquisition brings Arrow a global presence in the wireless and power conversion markets with specialized expertise in RF engineering and a highly talented team of sales professionals," said Michael J. Long, chairman, president, and chief executive officer of Arrow Electronics. "With the addition of this acquisition, we will increase our footprint in the Asia-Pacific market where growth has been very robust."
Richardson RFPD will become a separate operating unit of Arrow Electronics and its headquarters will remain in LaFox, IL. Richardson RFPD has approximately 400 employees and total sales were in excess of $350 million for the fiscal year ended May 29, 2010. The transaction is expected to be $.10-$.20 per share accretive to earnings in the first full year of operations. The acquisition has been approved by the Boards of Directors of both companies and is subject to the approval of Richardson Electronics’ shareholders as well as customary regulatory approvals. The transaction is expected to close in early 2011.
“Richardson RFPD is one of the few companies in the industry with the ability to design, assemble, manufacture, and test an entire system," concluded Long. "This acquisition is aligned with our strategy to diversify into markets that offer superior growth characteristics and increase our portfolio of value-added services.”