In July 2024, Milexia successfully acquired procurement specialists, Whistler Technology in a move to further enhance the services they offer to industries that are reliant on high-reliable electronic components.
The success of this acquisition means that customers have the added value of Milexia’s expertise as a value-added distributor combined with Whistler Technology’s niche capabilities in sourcing hard-to-find and obsolete components, thus providing a comprehensive service that spans the entire product lifecycle.
Who are Milexia and Whistler?
Milexia has a 54-year history and it operates as a global value-added distributor in the high-tech electronics sector. Its speciality lies in working with customers during the early design phases of their projects, offering technical support in partnership with franchised suppliers. With its operations spanning 15 countries, it serves a range of industries such as defence, transportation, and aerospace.
Whistler, on the other hand, has established itself over the last 23 years as a go-to supplier for obsolete and hard-to-find components. While smaller in scale, Whistler has built a loyal customer base through organic growth, relying on personal connections and exceptional service.
The merger: a long-term vision
Speaking to me at electronica 2024, Milexia CEO Xavier Gaillard shared that the acquisition was a long-term goal for the company that came to fruition at the right time: “Since the beginning, our strategy has been to offer the entire service to the customer. So it became natural, at a given time, to also offer these services to our main clients – not only the broker, but also the hard-to-find components, the obsolescence solutions.
“We started to discuss this with Whistler a long time ago, but it was not the right moment. But, when you’re in mergers and acquisitions, one day it is the right moment. And that day came last August … we had consolidated everything else, we saw our global presence in Europe and in 15 countries, we had an almost €200 million turnover, and we have a very big customer base, and so we needed to offer our customers something more. We needed to offer this service.”
The integration of this merger brings clear benefits for both companies. For Whistler, having the backing of Milexia provides access to marketing tools, a broader customer base, and operational resources.
Grant Portman, Senior Key Account Manager at Whistler, tells me: “With the backing of Milexia now, it makes it easier for us to do our jobs, it’s a potentially easier sell, especially with people talking about the trade tariffs and things from the UK to Europe. These guys have offices in Germany, France, Italy, Hong Kong. It actually helps us to get out there and tell people, ‘Look, now we’re part of something bigger.’”
For Milexia, the acquisition strengthens its ability to deliver a complete service. Gaillard elaborates: “This is a great combination. On one side, for the traditional Milexia, it’s going to be additional services to the customer. On the other side, it helps Whistler enlarge their customer base.”
Tackling the procurement challenges
The acquisition addresses some of the persistent challenges in procurement, including supply shortages, obsolescence, and the need for long-term support. With manufacturing cycles in sectors like defence and aerospace spanning years, ensuring the availability of components over time of great value.
Gaillard explains the importance of flexibility in responding to customer needs: “The design cycle is very long, the production cycle is even longer. So when the customer arrives at the end of this production cycle, typically, the technology does not exist anymore. They come back and say, ‘I need this component. Where can I find it?’”
Given this, Whistler’s expertise in sourcing these components is a natural fit for Milexia’s established relationships in high-reliability sectors. The merger also allows both companies to better serve their customers looking for fewer, more versatile suppliers to streamline their operations.
Adapting to market changes
Both Milexia and Whistler recognise the need to stay adaptable in a fluctuating market. As Portman notes, Whistler has already begun diversifying its focus: “The market is always fluctuating. We’re very flexible and we can move from one part of the market to another area that’s busier. At the moment medical and defence all seem to be ok, but some other areas of industry are quite quiet. So, we’ve shifted slightly away from just obsolescence and hard-to-find. Not that we want to move away from that, but some of those opportunities are a bit slower to come through, so we’re looking at offering services as solutions providers.”
Gaillard echoes this sentiment: “We are agnostic to the market. We can sell in any markets. So today, defence is big, transportation is down, construction is dead … We cast a wide net.”
This adaptability positions the combined entity to navigate market cycles effectively and enables to them to continue to meet customer needs.
Building for the future
For customers, the merger is an opportunity to access a streamlined and comprehensive service. By covering the entire value chain from design support to lifecycle management, the partnership offers a level of support that neither company could fully provide alone.
Looking ahead, both companies are optimistic about the market’s recovery and their ability to meet increasing demand. As Gaillard summarises: “I think we are unique to offer this value proposition. And, I’m sorry to say, that what we have been through in 2022 is coming back. It’s a matter of time. Now, everybody is emptying stock. The market is cycling. The market will restart. Everybody will want their parts, and no parts will be available … We will be there when it comes back. We are very well-organised and integrated … And it’s going to be fantastic.”
