Delta Electronics Inc., a major Taiwan-based power supply and electronic component manufacturer, announced Monday that subsidiary Deltronics (Netherlands) B. V., will spend NT$17 billion (US$530 million) to acquire Eltek ASA of Norway. Delta Electronics said at a news conference that its wholly owned subsidiary will acquire the Norwegian power solutions provider through a public offering at 11.75 Norwegian krone per share for up to 100 percent of all outstanding Eltek shares.The transaction, valued at about US$530 million, is expected to be completed by June 2015.
Delta Electronics Chairman Yancey Hai said the two companies are complementary in terms of both markets covered and technologies.
Eltek, which has operations in almost 40 countries around the world, focuses mainly on markets in Europe and the United States, while Delta Electronics has its major markets in Asia.
The Norwegian company is a leader in power supply development and power conversion systems for telecom and industrial applications. It reported revenues of US$620 million last year.
Hai said acquisitions will be one of Delta Electronics’ strategies in the future. The company is putting up its own funds to acquire Eltek, but he did not rule out the possibility of soliciting funds from capital markets next year to make other moves.
Having reviewed 20 potential acquisition targets this year, Delta Electronics is setting its sights on companies in several fields, including power systems for industrial applications and medical science, industrial automation, and logistics, according to Hai.