Arrow to buy Nu Horizons Electronics for $130M

Arrow Electronics Inc. is buying another Long Island company, Nu Horizons Electronics Corp., in an all-cash deal, the companies said Monday.

Melville-based Arrow did not say how much, overall, it will pay to acquire the semiconductor distributor, but said its per-share payment will be $7 - more than twice the $3.41 Friday closing price of Nu Horizons.

Reuters news service estimated the value of the sale at $130 million.

"This transaction represents an excellent value for Nu Horizons' shareholders and a compelling opportunity for our employees, customers and suppliers," Martin Kent, chief executive of Nu Horizons, said in a news release.

Nu Horizons, also based in Melville, has sales facilities in more than 50 locations across North America, Asia and Europe. It has more than 700 employees and had sales of $671 million for the fiscal year ended Feb. 28.

The acquisition has been approved by the boards of directors of both companies and is subject to the approval of Nu Horizons' shareholders. With the buy, Arrow expects to add 5 cents to 10 cents per share to its earnings the first full year of operations.

"This acquisition builds on our strategy to expand our global capabilities, especially in the fast-growing Asia-Pacific region," Michael J. Long, chairman, president and chief executive of Arrow, said in a statement.

"Nu Horizons' strong customer and supplier relationships and talented employees will allow us to continue to enhance shareholder value."

Arrow, with annual sales exceeding $16 billion and more than 11,000 employees, describes itself as a global provider of products, services and solutions to industrial and commercial users of electronic components and enterprise computing solutions.

It works with more than 900 suppliers and 125,000 original equipment manufacturers, contract manufacturers and commercial customers in 51 countries and territories.