Nu Horizons Electronics Corp. Completes Acquisition of UK-based Components Distributor DT Electronics Ltd.
Melville, NY — August 29, 2006 — Nu Horizons Electronics Corp. (NASDAQ:NUHC), a leading global distributor of advanced technology semiconductor, display and system solutions, today announced they have finalized their previously announced acquisition of DT Electronics Ltd., a franchised technical distributor of electronic components, based in Coventry, United Kingdom.
Under the terms of the agreement, Nu Horizons paid approximately $5.5 million in cash. The transaction also provides for potential additional payments to the sellers in three installments through 2009 from a minimum £849,426 up to a maximum £2,548,276. Payments of any amounts above the minimum are contingent upon the attainment of certain earnings milestones by DT Electronics during the three year period.
DT Electronics had $23 million in sales for the twelve month period ended March 31, 2006 and is expected to be accretive to Nu Horizons current fiscal year net income.
“We are pleased that we were able to successfully complete our acquisition of DT Electronics,” said Arthur Nadata, chairman and CEO for Nu Horizons Electronics Corp. “We expect that our partnership will further enhance our global delivery capabilities as we strategically expand our footprint in the European market. We believe that our similar business model of carrying a limited line card and employing a customer-centric approach to conducting business will cultivate a growing, effective, competitive presence in the region.”
Tony Frere, managing director for DT Electronics concludes, “All of us at DT Electronics are excited to join the Nu Horizons Electronics family. Our customers can be assured of a seamless integration as we migrate to Nu Horizons global infrastructure and operating system. We believe the combination of our technical sales and engineering teams will set a new standard of world-class service and support within the electronics industry.”
About DT Electronics Ltd.
Established in 1987, DT Electronics’ products come from leading suppliers of semiconductors, power supplies and passive components. Their customers include those in broadcast, communications, industrial, instrumentation, medical and consumer electronics markets. DT Electronics is distinguished by leadership in technical design-in work and has received numerous supplier and customer awards in recognition of this expertise.
About Nu Horizons Electronics Corp.
Nu Horizons Electronics Corp. is a leading global distributor of advanced technology semiconductor, display and system solutions to a wide variety of commercial original equipment manufacturers (OEMs) and Electronic Manufacturing Services providers (EMS). With sales facilities in 48 locations across North America, Europe and Asia and regional logistics centers throughout the globe, Nu Horizons partners with a limited number of best-in-class suppliers to provide in-depth product development, custom logistics and life-cycle support to its customers. Information on Nu Horizons and its services is available at http://www.nuhorizons.com
Except for historical information contained herein, the matters set forth in this news release are forward looking statements that involve certain risks and uncertainties that could cause actual results to differ from those in the forward-looking statements. When used in this press release, words such as “anticipate,” “believe,” “estimate,” “expect,” “intend” and similar expressions, as they relate to Nu Horizons or its management, identify forward-looking statements. Such forward-looking statements are based on the current beliefs of Nu Horizons’ management, as well as assumptions made by and information currently available to its management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors such as the level of business and consumer spending for electronic products, the amount of sales of Nu Horizons’ products, the competitive environment within the electronic component industry, the ability of Nu Horizons to continue to expand its operations, the ability of Nu Horizons to successfully integrate DT’s operations, the level of costs incurred in connection with Nu Horizons’ expansion efforts and the financial strength of Nu Horizons’ customers and suppliers. Investors are also directed to consider other risks and uncertainties discussed in documents filed by the Company with the Securities and Exchange Commission. Nu Horizons does not undertake any obligation to update such forward-looking statements.
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