BizLink Holding Inc., an interconnect electronics component supplier listed on the Taiwan Stock Exchange, has agreed to acquire the industrial solution assets from Germany’s Leoni AG for 450 million euros or about NT$14.51 billion (US$518 million).
In a statement released Friday, U.S.-headquartered BizLink, which is well-known for its supply of auto components, said it has signed a binding agreement with Leoni to acquire the Leoni Industrial Solutions business group in cash from the German company.
“BizLink’s acquisition of Leoni Industrial Solutions will boost our technical and service capabilities, solidify our global scale, bring us closer to customers, and gain access to new industrial customers,” BizLink Chairman Roger Liang (???) said in a statement.
“The acquisition brings forward our long-term diversification plans, and will provide BizLink with immediate gains within multiple secular growth industries,” Liang said.
He said the deal is expected to help BizLink accelerate its pace to become a global leader in providing interconnect solutions across its industrial, IT data center, automotive and electrical appliance segments.
Liang added that the acquisition is also expected to expand the company’s global footprint with additional operational scale across Europe, North America and Asia, while it is expected to boast an increased ability to penetrate attractive, high-growth applications.
According to Leoni, the Industrial Solutions business group belongs to the company’s WCS division (Wire & Cable Solution).
BizLink said the deal has been approved by its board of directors and the assets to be acquired are expected to be accretive immediately after closing.
It added the acquisition will be funded by the company’s existing cash and committed financing.
According to its latest financial reports, BizLink is sitting on NT$9.062 billion in working capital.
It said the Leoni Industrial Solutions business group posted about 430 million euros in sales in 2020 with its products used in a wide range of applications, such as telecommunications, healthcare, robotics, factory automation, and E-mobility, and its clients came from Europe, North America and Asia.
BizLink said the transaction is expected to be completed in early 2022, subject to customary closing conditions and the required regulatory approvals.
In recent years, BizLink has completed several acquisitions for expansion, including the purchases of Leoni’s Electrical Appliances business group in 2017 and of Speedy Industrial Supplies Pte Ltd in 2020.
BizLink’s share trading was suspended on the local main board Friday before the company disclosed the acquisition deal with Leoni. Its trading will resume Monday.
On Thursday, the stock closed up 0.68 percent at NT$223.50 on the TWSE.
Source: Focus Taiwan News Channel