Daetwyler Holding said on Tuesday it has agreed to buy Premier Farnell in an all-cash offer that valued the British electronic component distributor at just over 1 billion Swiss francs ($1.04 billion).

Altdorf, Switzerland-based Daetwyler, which distributes more than 500,000 electronics products under brands like Nedis, said the combination would create a group with total revenues of 2.5 billion francs ($2.60 billion).

Premier Farnell, which makes and sells the Raspberry Pi – a mini, low-cost computer, has been battling falling profit and squeezed margins as sales growth as its key UK and North America markets has hit a roadblock.

Premier Farnell unveiled a raft of measures in the face of shrinking profit which included slashing dividends and selling its industrial products unit Akron Brass to US-based IDEX Corp for $224.2 million in February.

Premier Farnell shareholders would receive 165 pence for each share held in the all-cash offer, said Daetwyler.

The deal values the entire share capital of Premier Farnell at approximately 848 million francs ($880.45 million) with an enterprise value of 1.09 billion francs ($1.13 billion). - Reuters