Electronics Production | June 07, 2007
Nu Horizons acquires Dacom-Süd
Nu Horizons Electronics Corp., a global distributor of advanced technology semiconductor, display, illumination and system solutions, today announced its acquisition of Dacom-Süd Electronic Vertriebs GmbH, a franchised electronic component distributor, based in Munich, Germany.
This acquisition follows by less than forty-five days Nu Horizons' announcement of the formation of its Nu Horizons Electronics GmbH subsidiary, as its initial entry in the German market. The European market in total is approximately the same size as the North America market for distribution sales of semiconductors, and Germany is the largest market within Europe. Nu Horizons initially entered the European market through its acquisition of DT Electronics in the UK, completed in August of 2006. The acquisition of Dacom-Süd is expected to rapidly expand Nu Horizons' customer reach within Germany, assisting Nu Horizons' accelerated expansion in this key market. Under the terms of the agreement, Dacom-Süd has become a wholly-owned subsidiary of Nu Horizons Electronics. Previous Dacom-Süd owner, Inge Merl, will remain as Managing Director for the subsidiary. Nu Horizons paid approximately $2.7 million in cash for this acquisition. Dacom-Süd had approximately $6.2 million in sales for the twelve month period ended December 31, 2006 and the acquisition is expected to be accretive to Nu Horizons' current fiscal year net income. “We are very pleased to broaden our reach into Germany's distribution market through the acquisition of Dacom-Süd," said Dave Bowers, president of Nu Horizons Distribution Division. “Dacom-Süd employs a similar business philosophy of carrying a limited line card and focus on application support for customers together with effective demand creation for suppliers."