Singapore-listed WE Holdings acquires HK components distributor

WE Holdings, a Singapore-listed distributor of electronics products, said on Wednesday it has agreed to acquire a Hong Kong-based components distributor.

It will buy Everbest Industrial for US$7.4 million and fund the acquisition by issuing new shares, the company said.

The deal includes a profit guarantee from Everbest that it will earn profits of at least US$1 million for each of its financial years in 2015, 2016 and 2017.

WE Holdings said the acquisition is in line with its plan to expand its electronic and system business, in order to achieve economies of scale and to broaden its revenue stream.

"The acquisition of Everbest allows us to progress synergistically to achieve our mutual business objectives," the company said in a statement.

"Through (Everbest's) presence in China, we can enter into the fast-growing electronics and components industry in the country, while cross-selling our electronics and components products using their network of customers and distribution channels.

"We will also exchange and enhance our technology expertise to innovate our products so as to excite the insatiable market."