TAIPEI, Taiwan and MONTREAL, Canada, April 2, 2024 – WT Microelectronics Co., Ltd. (TAIEX: 3036) (“WT Microelectronics”) today announced that it has successfully completed its acquisition of Future Electronics Inc. (“Future Electronics”) for an enterprise value of US$3.8 billion.
WT Microelectronics and Future Electronics are now joining forces in creating a global electronic components distribution powerhouse, dual-headquartered in Taipei and Montreal that will deliver long-term, sustainable value to all stakeholders. This acquisition represents a transformational milestone, as it brings together two highly complementary business models and solidifies WT Microelectronics’ position as a global electronics distributor with end-to-end service capabilities by leveraging the strengths and expertise of both organizations to offer even greater value to customers and suppliers.
WT Microelectronics (3036 TT) today announced its unaudited monthly sales for February 2024 totaled approximately NT$51.9 billion (US$1,649 million), a decrease of approximately 30% from January 2024 and an increase of approximately 62% over February 2023. Aggregated sales for January to February 2024 totaled approximately NT$125.6 billion (US$4,013 million), an increase of approximately 55% compared with the same period in 2023.
WT Microelectronics (3036 TT) today announced its unaudited monthly sales for January 2024 totaled approximately NT$73.7 billion (US$2,364 million), an increase of approximately 25% from December 2023 and an increase of approximately 50% over January 2023.
WT Microelectronics (3036 TT) (“WT”) held the online investor conference today to update the financial results of the fourth quarter of 2023 and business outlook. Unaudited consolidated revenue for the fourth quarter of 2023 was approximately NT$189.7bn (US$6.0bn), up 13% quarter-on-quarter and 20% year-on-year, operating profit was approximately NT$1,917mn (US$60.5mn), net profit after tax attributable to owners of the parent was approximately NT$1,044mn (US$33mn), and EPS was approximately NT$1.18 based on the weighted average outstanding shares. Unaudited consolidated revenue for the year of 2023 was approximately NT$594.5bn (US$19.1bn), up 4% year-on-year, operating profit was approximately NT$8.2bn (US$263.2mn), net profit after tax attributable to owners of the parent was approximately NT$4.01bn (US$128.8mn), and EPS was approximately NT$4.24 based on the weighted average outstanding shares.
For the outlook of the first quarter of 2024, based on the exchange rate assumption of one US dollar to 31.1 NT dollars, the mid-point consolidated revenue guidance is expected to be approximately NT$170bn (US$5.47bn), up approximately 42% year-on-year. The mid-point net profit after tax attributable to owners of the parent guidance is expected to be approximately NT$1,500mn (US$48.2mn) and the mid-point EPS guidance is expected to be approximately NT$1.5.
After experiencing a demand slowdown and inventory adjustments for the semiconductor market in 2023, the global professional institution Gartner expects the semiconductor market to resume growth in 2024, forecasting a 9.4% CAGR from 2023 to 2027. WT continues investing in applications and products with high growth potential to achieve above-market growth and market share expansion. WT focuses on promoting clean technology products such as green energy, energy storage, and high energy efficiency solutions, and is committed to the goal of achieving net-zero carbon emissions by 2050. We value corporate sustainability and target long-term, sustainable growth.
WT Microelectronics (3036 TT) today announced its unaudited monthly sales for December 2023 totaled approximately NT$58.8 billion (US$1,881 million), a decrease of approximately 7% from November 2023 and an increase of approximately 4% over December 2022. Sales for the fourth quarter of 2023 reached approximately NT$189.7 billion (US$5,991 million), an increase of approximately 13% from the third quarter of 2023 and an increase of approximately 20% over the fourth quarter of 2022, setting a new record for quarterly revenue, exceeding the high end of guidance (NT$170 billion ~ NT$180 billion). Aggregated sales for 2023 reached a record high of approximately $594.5 billion (US$19.1 billion), an increase of approximately 4% compared with the 2022 period.
WT Microelectronics (3036 TT) today announced its monthly sales for November 2023 totaled NT$63.3 billion (US$1,990 million approximately), a decrease of 6% from October 2023 and an increase of 47% over November 2022. Aggregated sales for January to November 2023 totaled NT$535.7 billion (US$17.2 billion approximately), up 4% compared with the same period in 2022.
WT Microelectronics (3036 TT) today announced its monthly sales for October 2023 totaled NT$67.6 billion (US$2,120 million approximately), set new record for monthly revenue, an increase of 8% from September 2023 and an increase of 18% over October 2022. Aggregated sales for January to October 2023 totaled NT$472.5 billion (US$15.21 billion approximately), flat compared with the same period in 2022.
WT Microelectronics (3036 TT) ("WT") held the on-line investor conference today to update the financial results of the third quarter of 2023 and business outlook. Unaudited consolidated revenue for the third quarter of 2023 was NT$167.2bn (US$5.3bn approximately), operating profit was NT$2,260mn (US$71mn), net profit after tax attributable to owners of the parent was NT$1,280mn (US$40.2mn approximately), and EPS was NT$1.45 based on weighted average outstanding shares. Consolidated revenue for the first to third quarters of 2023 was NT$404.8bn (US$13.1bn approximately), operating profit was NT$6.28bn (US$202.7mn), net profit after tax attributable to owners of the parent was NT$2.97bn (US$95.4mn approximately), and EPS was NT$3.06 based on weighted average outstanding shares.
For the outlook of the third quarter of 2023, based on the exchange rate assumption of one US dollar to 32.2 NT dollar, mid-point consolidated revenue guidance is expected to be NT$175bn (US$5.43bn approximately), up 5% quarter on quarter and 11% year on year. Mid-point net profit after tax attributable to owners of the parent guidance is expected to be NT$1,320mn (US$41mn approximately) and mid-point EPS guidance based on weighted average outstanding shares is expected to be NT$1.49.
Consolidated revenue for the year of 2023 (revenue of the first to third quarter plus mid-point revenue guidance of the fourth quarter) is expected to grow 1.5% year on year, which is higher than 10.9% year on year decline of semiconductor market from global professional institution Gartner's forecast. This demonstrates WT's continued outperforming performance compared with market. WT will continue to pursue outperformed growth and market share expansion and to execute digital optimization to improve operation efficiency. We values corporate sustainability and targets long-term sustainable growth.
WT Microelectronics (3036 TT) today announced its unaudited monthly sales for September 2023 totaled NT$62.9 billion (US$1,985 million approximately), an increase of 25% from August 2023 and a decrease of 1% over September 2022. Sales for the third quarter 2023 reached NT$167.2 billion (US$5,315 million approximately), an increase of 42% from the second quarter 2023, and an increase of 7% over the third quarter 2022, set new record for quarterly revenue, above the high end of guidance (NT$140 billion ~ NT$150 billion). Aggregated sales for January to September 2023 totaled NT$404.8 billion (US$13.1 billion approximately), a decrease of 2% compared with the same period in 2022.
TAIPEI, Taiwan and MONTREAL, Canada, September 14, 2023 – WT Microelectronics Co., Ltd. (TAIEX: 3036) ("WT Microelectronics") today announced that it has entered into a definitive agreement to acquire 100% of the shares of Future Electronics Inc. ("Future Electronics") for an enterprise value of US$3.8 billion in an all-cash transaction. The strategic transaction is anticipated to deliver long-term, sustainable value to all relevant stakeholders including customers, suppliers, employees, and shareholders through the combination of two highly complementary organizations.
Future Electronics, a Canadian-based leading global distributor of electronic components, generated revenues of US$2.9 billion, operating income of US$228 million, and net income of US$184 million for the six months ended on June 30, 2023. The privately-held company, with approximately 5,200 employees in 47 countries, provides customers with application engineering expertise and supply chain services covering a portfolio of electronics from industry leading suppliers.
"This is transformational for WT Microelectronics and Future Electronics and important for the electronic component ecosystem," said Eric Cheng, Chairman and CEO of WT Microelectronics. "Future Electronics has an experienced and deep management team and a very talented employee base, and is highly complementary to WT Microelectronics in terms of product offerings, customer coverage, and global footprint. Future’s management team, all of their employees worldwide, and all locations and distribution centers will continue to operate and add value to the organization. We are excited to invite Mr. Omar Baig to join WT Microelectronics’ Board of Directors post-closing and look forward to working with him and his immensely talented colleagues around the world to build together a best-in-class electronic components distributor."
"We are excited to join WT Microelectronics and believe that this transaction will benefit all our stakeholders. Our two companies share a common culture, driven by a rich entrepreneurial spirit that will empower our talented employees globally", said Omar Baig, President, CEO and Chairman of Future Electronics. "This combination is a great opportunity for WT Microelectronics and Future Electronics to jointly form a world-class industry leader, and allows us to continue our long-term strategic plan to offer the highest level of services to our customers, which we have been doing for the past 55 years."
Transaction Benefits
Approvals and Financing
WT Microelectronics intends to fund the transaction with a combination of cash on hand and committed debt financing provided by DBS Bank. The transaction has been unanimously approved by WT Microelectronics’ Board of Directors and Future Electronics’ Board of Directors, and is expected to close in the first half of 2024, subject to customary closing conditions including the receipt of required regulatory approvals.
Advisors
Citigroup is serving as the exclusive financial advisor to WT Microelectronics, with Skadden, Arps, Slate, Meagher & Flom LLP, Osler, Hoskin & Harcourt LLP, and Tsar & Tsai Law Firm as its legal advisors. Canaccord Genuity Corp. is serving as the exclusive financial advisor to Future Electronics with Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. as its legal advisor.
About WT Microelectronics
Founded in 1993 and headquartered in Taiwan, WT Microelectronics is one of the leading and fastest growing semiconductor components distributors globally. WT Microelectronics partners with over 80 suppliers across every major technology segment to serve a highly diversified customer base of over 10,000 customers worldwide. Additional information about WT Microelectronics can be found at https://www.wtmec.com/。
About Future Electronics
Future Electronics is a global leader in electronics distribution, recognized for providing customers with global supply chain solutions, custom-tailored engineering services and a very extensive variety of electronic components. Founded in 1968, Future Electronics believes its 5,200 employees are its greatest asset, with 170 offices in 47 countries. Future Electronics is globally integrated, with a unified IT infrastructure that delivers real-time inventory availability and access to customers. With the highest level of service, the most advanced engineering capabilities, and the largest available-to-sell inventory in the world, Future’s mission is always to Delight the Customer®. For more information, visit www.FutureElectronics.com。
