Swiss electronics firm Datwyler has reached an agreement to acquire Premier Farnell, the Raspberry Pi maker, for £615m.
Premier Farnell will be acquired by one of Datwyler’s subsidiary Bidco and will pay Premier Farnell 165 pence per share, in cash – this represents a premium of 51% on the closing price of 109.3 pence per Premier Farnell share on 13 June 2016.
With this merger, Datwyler intends to create one of Europe’s largest electronic component distribution systems and create further economies to scale.
Premier Farnell was established in 1939 in Leeds and is listed on the London Stock Exchange. The company sells electronic components to companies and to individual hobbyists, but is best known for the Raspberry Pi.
The Raspberry Pi is a tiny and cheap computer designed by the Raspberry Pi Foundation, a non-profit organisation trying to provide to make access to cheap computer to children.
Raspberry Pi Foundation’s aim was to get children interested in computers and coding from a young age.
The Raspberry Pi Zero is a $5 computer and is said to be the cheapest computer in the world. The other models, which made their debut last year, are Pi 2 and Pi 3, costing about up to $35. The low-cost computer, a circuit-board which is as big as a credit card gained instant recognition worldwide.
This circuit board needs to be connected to a power supply, a keyboard, a mouse and to a monitor or TV. It runs on Linux operating system and Premier Farnell also built another small industry around it to make and sell additional accessories for the tiny computer.
Datwyler chairman Ulrich Graf said: "Premier Farnell and Datwyler both have long and successful histories in high-service distribution for electronic components.
"By combining forces, we significantly increase our competitiveness and extend our product range, facilitating a one-stop shopping experience for our wide range of customers from a multitude of industries.
"With our system critical service we have a distinct differentiator and create value for all stakeholders – customers, suppliers, employees and shareholders."
Premier Farnell chairman Valerie Gooding said: "The Premier Farnell Directors believe that this offer recognises the quality of our business and its future prospects, and provides our shareholders with immediate and significant value in cash for their shares.
"We believe that Premier Farnell will be better positioned to address these changes and challenges with the benefit of the increased scale afforded by a combination with Datwyler.
