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By | Alexander J Martin 14th June 2016 15:03

Raspberry Pi distributor Premier Farnell in £792m Swiss buyout deal

Deal sees Brit firm's shareholders offered 50 per cent premium

Premier Farnell, British Raspberry Pi distribution firm, is set to be purchased by Swiss group Dätwyler Holding for £792m.

In a letter to investors released today Premier Farnell said an agreement had been made to allow Dätwyler to take over the company, subject to shareholder and regulatory approval.

Leeds-based Premier Farnell will be bought out by the Swiss group in an all-cash deal worth £615m in terms of share capital, an approximately 51 per cent premium on its trading value.

The markets quickly jumped to match this valuation, with shares surging to meet it on Tuesday.

The entire cash consideration of the deal offers an enterprise value of £792m, said the letter, which added that both companies "share very similar strategic values and are highly complementary in terms of product range (for example, in respect of the Electronic Design Engineering and Maintena nce, Repair , Operations sectors), distribution channels and geographic footprint."

Ulrich Graf, Datwyler's chairman, commented on the announcement to say that both Premier Farnell and Datwyler "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."

Valerie Gooding, Premier Farnell's chairman, said that the company's 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." ®

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