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 be the 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 realize potential synergies for the enlarged WT group, but also bring more demand creation opportunities for the suppliers.