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On September 14, electronic components distributor Wenye Microelectronics Co., Ltd. (hereinafter referred to as “Wenye”) announced that it had signed a final agreement with Future Electronics Inc. (“Future Electronics”) to acquire 100% of Future Electronics shares in an all-cash transaction with an enterprise value of $3.8 billion.

This is a change for Wenye Technology and Future Electronics, and is also of great significance to the electronic component ecosystem.
Cheng Jiaqiang, Chairman and CEO of Wenye Technology, said: ” Future Electronics has an experienced and strong management team and a talented workforce, which are highly complementary to Wenye Technology in terms of product supply, customer coverage and global presence. Future Electronics management team, all employees globally and all locations and distribution centers will continue to operate and add value to the organization. We are pleased to invite Mr. Omar Baig to join the Wenye Microelectronics Board of Directors upon completion of the transaction and look forward to working with him and his talented colleagues around the world work together to create a best-in-class electronic components distributor.”

Omar Baig, President, CEO and Chairman of Future Electronics, said: “We are pleased to join Wenye Microelectronics and believe this transaction will benefit all our stakeholders. Our two companies share a common culture, which makes This culture is driven by a rich entrepreneurial spirit, which will empower our talented employees around the world. This merger is an excellent opportunity for Wenye Microelectronics and Future Electronics to jointly create a world-class industry leader and Allowing us to continue executing on our long-term strategic plan to provide the highest level of service to our customers, which is what we have been doing for the past 55 years.”

Industry insiders pointed out that Future Electronics has been rumored to be acquired and sold for a long time, and many domestic chip manufacturers have been in contact with it. However, the situation eventually broke down due to financial and price factors. In the second half of last year, the semiconductor boom began to freeze and terminal inventories increased significantly. Many manufacturers also had to help stockpile inventory at the request of the original manufacturers. Coupled with the increase in interest rates in the United States, interest expenses increased and financial pressure doubled, which may be an important factor in accelerating the completion of this merger.

Data show that Future Electronics was founded in 1968 and is headquartered in Montreal, Canada. It has 169 branches in 44 countries/regions in the Americas, Europe, Asia, Africa and Oceania. The company owns Taiwan Chuangxian Electronics; according to research According to the 2019 global semiconductor channel sales revenue rankings by Gartner, the American company Arrow ranked first in the world, followed by General Assembly, Avnet, and Wenye ranked fourth in the world, while Future Electronics ranked seventh.

This acquisition of Future Electronics is also another important milestone for Wenye to expand its global presence after acquiring Singapore-based Business World Technology. In April last year, Wenye, through its 100%-owned subsidiary WT Semiconductor Pte. Ltd., acquired 100% of the equity of Singapore Business World Technology for a cash of 1.93 Singapore dollars per share, and a total amount of approximately 232.2 million Singapore dollars. The relevant procedures were completed at the end of the year. Through this merger, Wenye was able to strengthen its product line and rapidly expand its business. As the second largest electronic components distributor in Asia, Wenye will enter the top three globally after acquiring Future Electronics. However, one of the competitors, Dalianda, is also the top three shareholder of Wenye, with a current shareholding ratio of 19.97%, and the second largest shareholder is Xiangshuo, with a shareholding ratio of 19.28%.