TAIPEI -- Taiwan's Yageo Corp. said it would buy Pulse Electronics for $740 million, marking its biggest deal ever as it looks to expand in the United States and Europe.
The cash offer is the second midsize bid from a Taiwanese electronics company to buy a U.S. company in recent months. The other one was Foxconn's $866 million offer for PC accessories company Belkin in March.
Acquiring Pulse, a maker of electronic components for cars and heavy industries, will strengthen Yageo's position in the automotive electronics market, a Yageo executive said at a news conference Tuesday, underscoring the growing focus on new-energy vehicles that use more smart technology.
Pulse, which also sells into the wireless and wireline communications market and defense industry, won several key customers last year, including a new contract to supply to a leading U.S. electric vehicle company, it said in January.
Last year, Pulse, of Vancouver, Wash., reported revenue of $315 million and a net profit of $34.6 million.
Yageo provides resistors, capacitors, wireless components and soft ferrite products for consumer, automotive and industrial markets, according to the company's website.
The company's shares have had a big run recently after years of middling performance -- climbing sevenfold in the past year.
Its revenue rose 62 percent in the March quarter to a record 11 billion Taiwan dollars ($368.25 million) while the company posted its highest ever net profit as well.