Premier Farnell has ditched Datwyler after a higher bidder emerged for the British electronics firm behind the Raspberry Pi mini computer, sending shares soaring.
US tech firm Avnet has made a takeover offer of 185 pence per share in an all-cash offer, giving Premier Farnell an enterprise value of £868m.
The offer is higher than a bid in June by Swiss manufacturer Datwyler of 165 pence per share, which gave the firm an enterprise value of £792m.
The firm will recommend the new offer, which is a 12.1 per cent premium on the Datwyler bid and a 69.3 per cent premium on the closing share price prior to the first bid.
“This acquisition will significantly strengthen Avnet’s digital footprint worldwide. The convergence of Premier Farnell’s innovative online services with Avnet’s world class supply chain will create customer service unparalleled in the industry," said Avnet interim chief Bill Amelio.
"The talented team of people at Premier Farnell will allow Avnet to enhance our customer experience and accelerate our global growth."
Premier Farnell shares leaped more than 15 per cent as markets opened and chairman Valerie Gooding welcomed the deal as providing significant cash value for shareholders.
"The combination of Premier Farnell and Avnet would create a leading high-service global electronic components distributor and represents a strong strategic fit. Both companies are highly complementary in terms of product range, distribution channels and geographic footprint.”