Richardson Electronics Ltd. (RELL) said Friday it agreed to sell its RF, Wireless and Power Division [RFPD] to Arrow Electronics (ARW) for $210 million in cash.
RFPD generated revenue of $356 million during FY 2010.
“The decision to divest the RFPD division was not an easy one; however, this transaction provides an excellent return on our investment,” Edward J. Richardson, chairman and CEO of Richardson Electronics, Ltd. said in a statement.
Arrow said it intends to operate the communications services company as a separate business unit.
The deal is subject to approval of Richardson holders, and is expected to close in early 2011.
RELL gained $0.56, or 4.76 percent, to $11.00 at 11:13 p.m. ET in Nasdaq composite trading. ARW advanced 7 cents, or 0.26 percent, to $26.80.