LONDON Electronic component distributor Nu Horizons Electronics Corp. has bought, for $2.7 million in cash, Dacom-Süd Electronic Vertriebs GmbH, a franchised electronic component distributor, based in Munich, Germany.
The move comes just a few weeks after Nu Horizons (Melville, N.Y.) formed a German subsidiary as its initial entry in the market, and from where it plans to serve the East European market.
Nu Horizons initially entered the European market through its acquisition of DT Electronics in the U.K., completed in August 2006.
The Dacom-Süd deal is expected to rapidly expand Nu Horizons' reach within Germany, the largest market for electronic component sales in Europe.
Under the terms of the agreement, Dacom-Süd becomes a wholly-owned subsidiary of Nu Horizons Electronics. Previous Dacom-Süd owner, Inge Merl, will remain as Managing Director for the subsidiary.
The German company had sales of approximately $6.2 million for the twelve months ended December 31, 2006, and the acquisition is expected to be accretive to Nu Horizons' current fiscal year net income.