RANCHO CUCAMONGA, Calif., Nov. 18, 2016 (GLOBE NEWSWIRE) -- Monoprice, a leading online retailer offering high-quality and affordably priced consumer electronics and tech accessories, and YFC-BonEagle Electric Co., Ltd. (YFC), a Taiwan-based leading provider of power cord sets and networking peripherals, announced today that YFC has acquired Monoprice in a cash transaction valued at $40 million.
Founded in 2002, Monoprice is an industry innovator disrupting the consumer technology industry by offering high-quality electronics, cables and components that eliminate cost markups within the supply chain. An advanced communication products supplier, YFC’s strengths lie in manufacturing in Asia as well as the wholesaling of cables and wires. The mutually beneficial merger will fuel Monoprice’s growth as it continues to evolve product pipelines within existing categories, expand into new ones, and strengthen its sourcing capabilities in China to yield the best prices. Monoprice will help guide YFC into opportunistic areas where it can increase its Asian factory footprint and launch products in new categories.
“Our overarching goal is to create a sales and manufacturing dual-force dynamic for the group’s next generation of growth,” said Mark Yeh, chairman at YFC. “This acquisition is intended to gain access to consumer electronics users and make our strong product offering even stronger. We manufacture high-quality, high-standard cables and wires as an OEM supplier, and we’ve been marketing branded products as wholesalers for quite some time. Monoprice’s expertise in e-commerce and its wide customer base will complete our salesforce and customer portfolio. We have worked with Monoprice for many years and see significant growth potential and strategic synergies by coming together.”
Monoprice has over a decade of e-commerce experience in the consumer electronics industry, offering a broad and differentiated combination of branded products via a multi-channel platform. Its website, Monoprice.com, has a robust source of revenue, representing more than 67 percent of total sales. It also partners with third-party marketplaces, such as Amazon and Wal-Mart, to gain brand recognition and further open revenue opportunities. Monoprice’s strong customer relationships provide a base for sustainable growth by YFC and Monoprice.
Monoprice has created a disruptive business model in consumer electronics retailing. It has established a strong competitive position by offering consumers lower prices because of its close relationships with top-tier manufacturers. YFC, well-respected in China for its manufacturing and supply chain capabilities, will provide Monoprice with an even better sourcing process and economies of scale. The integration of supply chains across all product offerings will allow Monoprice to offer consumers with attractive pricing and will accelerate new product introductions with easier access to development opportunities.
“The combination of our two businesses is great news not only for our stakeholders, but also our customers and employees,” said Bernard Luthi, CEO at Monoprice. “Joining forces with YFC fully supports our business objectives and accelerates both companies’ roadmaps for continued growth. YFC’s strong manufacturing power and overnight access to the well-connected Asian supply chain gives us a distinct competitive advantage and differentiation in product procurement and pricing. We intend to reinforce B2B and international sales operations, and we look forward to continuing to deliver better and wider choices of products at more affordable prices to our customers.”
Post-transaction plans are to retain and empower the current Monoprice leadership team with no operational or organizational restructuring required. Bernard Luthi will remain Monoprice’s CEO following the transaction, overseeing his management team to execute the company’s strategies and vision, and steer company growth.
Blucora and Monoprice were advised by Financo in the U.S. and YFC was advised by KPMG Corporate Finance out of Taipei.
About YFC-BonEagle Electric Co., Ltd.:
Founded in 1983, YFC-BonEagle Electric Co., Ltd has been engaged in developing, manufacturing, and selling power cord sets, LAN cables, patch cords, and related networking accessories worldwide. The company’s products are manufactured in three facilities in Taoyuan Taiwan, Dongguan China and Wuxi China. YFC’s offices are in the USA, China and Europe along with the global distribution networks to provide direct and timely support to its customers around the world. For more information: www.cables.com.tw
About Monoprice, Inc. (DBA Monoprice.com)
Located in Rancho Cucamonga, Calif., Monoprice, Inc. is an e-commerce leader specializing in providing more than 6,500 high-quality yet affordable electronics and tech products. As an industry innovator, Monoprice fills a void in the consumer technology market by delivering exceptional products that are on par with the best known national brands at prices far below the retail average with incomparable speed and service. Maintaining a business philosophy that focuses on the needs of its customers, the company strives to bring simplicity, fairness and confidence to consumers and businesses shopping for big-ticket electronics and tech accessories. For more information about Monoprice, follow us on Facebook, Twitter, LinkedIn, Google+, and YouTube.
Monoprice Media Contact: Havas Formula 619-234-0345 / Monoprice@HavasFormula.com