Electronics giant offers to buy Horizon for €101m

18 Apr 2008

US electronics company Avnet Group, a US$16bn business active in 70 countries worldwide, has offered US$101.3m to buy the entire share capital of Irish company Horizon Technology Group.

The offer, effectively €1.18 in cash for each Horizon share, has been described by Horizon’s directors as “fair and reasonable.”

They have advised their shareholders to accept the offer as they have already given their undertaking to do so.

Avnet, which employs 12,000 people worldwide, is one of the world’s largest electronic component and computer product distributors in the world, with services ranging from supply chain and design services for component suppliers, computer manufacturers and embedded subsystem providers.

2007 revenues at Avnet came in at US$15.7bn, with a net profit of US$413m.

While Horizon is an Irish-based company, 82pc of its revenues come from the UK in the provision of IT infrastructure, applications, software development and support.

The company reported revenues of US$288m and has been listed on the Dublin and London stock exchanges since 1999.

“The offer represents a substantial premium for Horizon’s shareholders and, as an all cash offer, provides certainty of value in highly uncertain markets,” said Horizon chairman, Samir Naji.

“The value ascribed to this offer recognises the intrinsic value and strength of Horizon’s business, which has been built through the commitment of a dedicated team over many years,” Naji added.

Horizon is being advised by Davy Corporate Finance and William Fry Solicitors for the potential sale, which will be conditional on EU merger control clearance.

By John Kennedy