Taiwan-based Yageo has reached a deal to buy U.S.-based Pulse Electronics, a supplier of electronic components, for US$740 million in cash.

Yageo indicated that through subsidiary Pluto Merger, the company will acquire 100 percent of Pulse for US$19.62 per share or a total of US$740 million. No timetable was set out for the acquisition.

The acquisition will be funded by its own cash, said Yageo, adding that the company had accumulated more than NT$25 billion (US$836.4 million) in cash as of May 20. Yageo expects to strengthen its presence in the automotive electronics and industrial market segments.

Acquiring Pulse will enhance Yageo's competitiveness in the 5G communication and electric vehicle fields, according to market watchers. Pulse's offerings are targeted at the wireless and wireline communications, power management, military/aerospace and automotive industries.

Yageo is expected to start fully recognizing Pulse's revenues and profits as early as the fourth quarter of 2018, said the watchers. Pulse has reported US$315 million in revenues and US$34.6 million in net profits for 2017.

Acquiring Pulse will expand Yageo's annual revenues by 37.3 percent, and boosted the Taiwan-based company's full-year EPS by another NT$3.70, the watchers indicated. Yageo has posted net profits of NT$6.66 billion, or NT$15.64 per share, on consolidated revenues of NT$32.26 billion for 2017, with the results all hitting record-high levels.

Earlier in 2018, Yageo disclosed plans to acquire shares of China-based BrightKing for NT$73 per unit from May 4 to June 21 with a goal of fully acquiring the circuit protection component specialist. Acquiring BrightKing will help improve further Yageo's product portfolio, as well as better provide customers with one-stop buying services, according to the Taiwan-based company specializing in MLCCs and chip resistors. Yageo also expects the deal to strengthen its presence in the automotive and industrial segments.