Memec, a global distributor of semiconductors that moved its headquarters from London to Carmel Valley two years ago, agreed to be acquired by Avnet Inc. in a deal valued at $676 million.
Avnet, a Phoenix based marketer and distributor of electronic components that generated sales of $10 billion in 2004, will pay Memec investors about 24 million shares of its stock, traded as AVT on the New York Stock Exchange, and $64 million in cash.
The deal includes Memec’s debt of about $194 million.
David Ashworth, Memec’s chief executive officer, said the company was exploring a number of strategic alternatives and that combining with Avnet provided the best prospects for the future.
“Avnet’s global infrastructure and access to capital, coupled with our technical expertise, will deliver industry leading value to our trading partners while allowing our investors to also participate in the value being created,” Ashworth said.
Memec, described as the world’s largest distributor of semiconductors, had about $2.3 billion in sales last year. It has operations in 33 countries, and 2,400 employees, including about 275 in San Diego.
The transaction, subject to regulatory approvals, is expected to close in 60 to 90 days. The company didn’t say whether it would maintain the San Diego office once the sale is completed.
Memec planned to issue stock last year in an initial public offering, hoping
to raise an estimated $100 million. In its sale announcement April 26, Memec said it spent $5.6 million on the IPO and related costs.