September 20, 2010 / 3:07 PM / 9 years ago

UPDATE 1-Arrow Electronics to buy Nu Horizons for $130 mln

* To pay $7/shr in cash, offers more than 100 pct premium

* Deal to add to earnings in first full year of operations

* Deal to close in Q4

* Nu Horizon shares more than double in value

Sept 20 (Reuters) - Arrow Electronics Inc (ARW.N) agreed to buy technology distributor Nu Horizons Electronic Corp NUHC.O for about $130 million in cash to boost its presence in the fast-growing Asia-Pacific region.

The deal, which is Arrow’s fifth buy this year, comes close on the heels of rival Avnet Inc’s AVT.N acquisition of Japan’s Unidux Inc 9897.T.

The Asia-Pacific region, which is driving global sales of electronics products, accounted for about a quarter of Arrow’s revenue in 2009, up from 18 percent in the prior year.

Arrow will pay $7 per share for Nu Horizons, more than double the stock’s closing price of $3.41 Friday on Nasdaq.

Nearly a third of Melville, New York-based Nu Horizons’ 2010 revenue of $671 million came from the Asia-Pacific region.

Arrow Electronics, which distributes products of IBM (IBM.N) and Hewlett-Packard (HPQ.N) among others, sees the deal adding 5-10 cents to per-share earnings in the first full-year of operations.

The deal is expected to close in the fourth quarter.

Shares of Nu Horizon rose $3.50 to $6.91 to touch their highest since May 2008. They had touched a year high of $4.68 on Jan. 21 but shed 37 percent of their value to a year low of $2.95 on July 7. (Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by Gopakumar Warrier)

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