Distributor Sager Electronics will acquire PowerGate LLC, a California-based power component distributor. Terms of the acquisition were not released.
Sager, a wholly-owned subsidiary of Fort Worth, Texas-based distributor TTI, said it has entered into a purchase agreement to acquire PowerGate, headquartered in Santa Clara, Calif. PowerGate specializes in AC/DC power supplies and DC/DC converters, selling them to customers in the IT, medical and industrial equipment markets.
Sager, based in Middleborough, MA, is a North American distributor of interconnect,electromechanical and power components.
Frank Flynn, Sager president, said that PowerGate is a recognized power specialist “with concentration in select North American markets. This acquisition advances one of our growth strategies and strengthens our position in the market as a power specialist,” he said.
He added that Sager would “preserve and build upon” PowerGate’s specialization by making significant investments in key markets and inventory in order to accelerategrowth.
Paul Christiansen, PowerGate president, said that Sager “values and understands our business model.” He added that he welcomes the opportunity to service more customers in power with “leading-edge technologies, technical sales expertise and field application engineering.”
After the acquisition, Christiansen will join Sager Electronics as vice presidentsupplier marketing and product management for power.
Sager earlier in the year said that it would focus more on the power supply business to grow its sales in 2014. Sager’s sales were down slightly in 2013, but sales growth was expected to return in 2014. The company said so far in 2014, its sales were increasing in its key customer segments of industrial, instrumentation and medical.
The acquisition is subject to customary closing conditions and is expected to close by the end of the month.
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