Yageo to Acquire Pulse Electronics for $740 Million

Pulse YageoYageo Corporation has announced the acquisition of Pulse Electronics, an American based electronic component manufacturers best know for their antenna and wireless products. Pulse Electronics will be acquired through Yageo's subsidiary Pluto Merger Corporation for $740 Million. In 2017, Pulse’s consolidated revenue was about over $400 Million with an operating margin of about $43 Million USD.

Pulse Electronics was established in 1947 and is headquartered in San Diego, USA. There are 16 R&D and design centers located in Asia, the United States and Europe and 8 sales offices worldwide, and 8 production plants in China, the United States, the Czech Republic and India with 6,000 employees in total, including 270 R&D engineers and 200 salespersons.

They are a global comprehensive supplier of electronic components. The main products are wireless components (FluidANT 3D Printing antenna, Laser Direct Structuring antenna, and infrastructure antenna modules), high-end transformers, integrated connector modules, RF Chip inductors, power supplies and cable systems. Pulse has a long-term development in automotive electronics and industrial applications with more than 70 years global brand. Pulse holds a leading position by its R&D and design-in capabilities in advanced 5G and EV (electric vehicle) technology with many patents worldwide. Pulse also focused on other applications like networking equipments, wireless communications, and power management. End customers include global brand manufacturers and distributors in these segments. Sales area in China accounted for 44 %, Europe for 32%, Americas for 15%, the rest of Asia for 9%.

Through this acquisition, Yageo expects to continue to expand the company's operating scale, obtain more advanced technologies to enhance its international competitiveness, provide faster and more efficient service for global customers, and create higher value for the industry and the shareholders.

Some Key Goals of this Acquisition are:

  • Expand its product portfolio by not only providing complete passive components but also offering a one-stop shopping service to the customers in electronic components such as wireless components, high-end transformers, integrated connector modules, RF chip inductors, power supplies and cable systems 
  • Increase their operation scale and market presence in the United States and Europe. 
  • Continuously strengthen their development in the automotive and industrial markets. 
  • Expand the business scale of Pulse’s electronic components through Yageo’s global market allocations and sales channels.
  • Leverage the synergies in technology, production, and management between Yageo and Pulse.