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Yageo Acquires Pulse, Beefs up Product Range, Market Reach

Yageo Corporation has acquired the entire share of Pulse Electronics, an American electronic components company, for US$740 million. Yageo made the acquisition through its wholly owned subsidiary, Pluto Merger Corporation. Pulse's consolidated revenue in 2017 was about US$403.77 million, with an operating margin of about US$43.74 million.

Pulse Electronics is a portfolio company of funds managed by Oaktree Capital Management, L.P. Oaktree acquired 100 percent shares of Pulse Electronics in April 2015 through its investment fund, and in the same year, Pulse was delisted from the New York Stock Exchange as a private company.

In acquiring Pulse, Yageo aims to expand its product portfolio by not only providing complete passive components but also offering one-stop service to its customers in electronic components and increase the company's operation scale and market presence in the United States and other markets in Europe. Yageo also wanted to strengthen the company's development in the automotive and industrial markets, expand business scale of Pulse's portfolio through Yageo's global market, and leverage on the synergies in technology, production, and management between the two companies.

Pulse was established in 1947 and is headquartered in San Diego, California and has about 16 research and development (R&D) and design centers located in Asia, the United States, as well as in Europe. It also has eight sales offices worldwide, and eight production plants located in China, the United States, the Czech Republic, and India. It has about 6,000 employees, including 270 R&D engineers and 200 salespersons. Pulse is a global comprehensive supplier of electronic components. The main products are wireless components (FluidANT 3D Printing antenna, Laser Direct Structuring antenna, and infrastructure antenna modules), high-end transformers, integrated connector modules, RF chip inductors, power supplies and cable systems.

Pulse has a long-term development in automotive electronics and industrial applications with more than 70 years global brand. Pulse holds a leading position by its R&D and design-in capabilities in advanced 5G and electric vehicle technology with many patents worldwide. Pulse also focused on other applications like networking equipment, wireless communications, and power management.