WT Microelectronics Announces Acquisition of Excelpoint Technology to enhance product offerings and market expansion
13 Apr 2022 (Wed)
WT Microelectronics Co., Ltd. (TWSE: 3036) (“WT”) and Excelpoint Technology Ltd. (SGX: BDF) (“Excelpoint”) today announced that WT, through its wholly owned subsidiary WT Semiconductor Pte. Ltd.(“Acquiring Entity”), and Excelpoint have entered into a definitive agreement pursuant to which WT, through the Acquiring Entity, will acquire 100% equity in Excelpoint by way of a scheme of arrangement (“Scheme”) at a cash consideration of S$1.93 per Excelpoint share.
The transaction, which values 100% equity of Excelpoint at over S$232.2 million, is expected to close in the third quarter of 2022,
subject to, among others, the approvals of Excelpoint shareholders and relevant regulatory authorities as well as the sanction of the Scheme by the Singapore High Court. The founder and CEO of Excelpoint, Mr. Albert Phuay, will reinvest part of the cash consideration due to him under the Scheme in 20% equity of the Acquiring Entity, with the balance 80% stake owned by WT. Mr. Albert Phuay will continue to bethe CEO of Excelpoint.
In 2021, amidst continued Covid-19 pandemic and uncertain macroeconomic environment, Excelpoint achieved strong growth in
revenue and operating profitability. Excelpoint’s consolidated revenue,operating income and net income amounted to US$1,598.5m, US$30.5m and US$24.5m in FY2021, representing year-on-year growth of 44.2%, 148.3% and 137.2% respectively compared with FY2020. Excelpoint’s emphasis on strengthening its engineering expertise and capabilities to develop more technology solutions alongside its partners adds value to the company’s business, ensuring its sustainability and relevance to market needs. This strategy has given Excelpoint a competitive edge and its strong positioning in today’s market.
Excelpoint was listed in the Singapore stock exchange in 2004.
Through the years, the company has built and grew its businesses based on its strong fundamentals, including the long-term trusted relationships with Excelpoint’s suppliers, such as Analog Device (ADI), Microchip, Qorvo, Qualcomm, and Samsung, among others. The company continues to expand its customer base and now works closely with over 4,000 customers.
WT, founded in 1993, is one of the global leading distributors of semiconductor components. WT has focused on high quality and value-driven businesses to pursue profitable growth and drive competitive advantages. After years of higher-than-industry growth, it achieved a revenue of close to US$16 billion in 2021. WT currently partners with over 80 suppliers across every major technology segment to serve over 8,000 customers worldwide.
There are strong synergies between both companies, who are believers of value-adding to partners. The enhanced complementary product line offerings will allow for business expansion. Most importantly, with the experienced teams and footprints from both companies, customers will benefit from the extensive product solutions and technical support provided by the WT group, allowing them earlier access to the market.
In addition, the established customer bases combined would significantly improve the distribution capabilities and customer portfolios of WT in the Asia Pacific region. Cross selling of various products to the customers of Excelpoint and WT would not only realise potential synergies for the enlarged WT group, but also bring more demand creation opportunities for the supplier
RESPONSIBILITY STATEMENTS
Excelpoint. The directors of the Excelpoint (including any who may have delegated detailed supervision of the preparation of this press release) have taken all reasonable care to ensure that the facts stated and all opinions expressed in this press release (excluding information relating to Mr. Albert Phuay (in respect of arrangements other than in his capacity as director of Excelpoint, the Acquiring Entity and/or WT or any opinion expressed by the Acquiring Entity and/or WT) are fair and accurate and that there are no other material facts not contained in this press release, the omission of which would make any statement in this press release misleading. The directors of Excelpoint jointly and severally accept responsibility accordingly.
Where any information has been extracted or reproduced from published or otherwise publicly available sources or obtained from the Acquiring Entity and/or WT, the sole responsibility of the directors of Excelpoint has been to ensure that, through reasonable enquiries, such information is accurately extracted from such sources or, as the case may be, reflected or reproduced in this press release. The directors of Excelpoint do not accept any responsibility for any information relating to the Acquiring Entity and/or WT or any opinion expressed by the Acquiring Entity and/or WT.
Acquiring Entity. The directors of the Acquiring Entity (including any who may have delegated detailed supervision of the preparation of this press release) have taken all reasonable care to ensure that the facts stated and all opinions expressed in this press release (excluding information relating to Excelpoint or any opinion expressed by Excelpoint) are fair and accurate and that there are no other material facts not contained in this press release, the omission of which would make any statement in this press release misleading. The directors of the Acquiring Entity jointly and severally accept responsibility accordingly.
Where any information has been extracted or reproduced from published or otherwise publicly available sources or obtained from Excelpoint, the sole responsibility of the directors of the Acquiring Entity has been to ensure that, through reasonable enquiries, such information is accurately extracted from such sources or, as the case may be, reflected or reproduced in this press release. The directors of the Acquiring Entity do not accept any responsibility for any information relating to Excelpoint or any opinion expressed by Excelpoint.
