Market Insight

Delta Electronics to Acquire Eltek, Consolidating its Position as Market Leader

December 18, 2014

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Key Points

  • On 15th December 2014, Delta Electronics, the largest manufacturer of merchant power supplies, accounting for 17.1% of the global market in 2013, announced that it would be acquiring Eltek ASA through its wholly owned subsidiary, Deltronics.
  • Eltek was the seventh largest supplier in 2013, accounting for 2.6% of the global market.
  • The acquisition will help Delta Electronics to consolidate its position as the leading supplier, accounting for a fifth of the total market based on 2013 revenues.
  • This is more than the combined market share of the second and third largest suppliers, Artesyn Technologies and Lite-On.
  • IHS estimates that the merchant power supply market grew was worth $21.6 billion in 2014.

By acquiring Eltek, Delta Electronics will consolidate its position as the market leader in the merchant power supply market. The combined revenues of the two manufacturers accounted for a fifth of the global market revenues in 2013, more than the combined market share of the second and third largest suppliers, Artesyn Technologies and Lite-On.

The acquisition will help Delta Electronics to secure its position, especially in the high-end telecom/datacom markets where Eltek has focused its power supply products. Although growing fairly modestly, the telecom/datacom sector is the largest segment of the market, accounting for a quarter of the total market in 2013 and this is projected to remain unchanged over the next five years. With this acquisition, Delta Electronics will account for 28% of this market segment based on 2013 revenues, strengthening its position. This will be particularly important in the coming years as the industry faces competition from Chinese telecom manufacturers such as Huawei and ZTE making market share gains.

This is the second instance of major M&A activity in the power supply market this year. In April, Bel Fuse acquired the power supply business of Power-One from ABB. This strengthened Bel Fuse’s positon in the DC-DC converter market where it went from being ranked the 15th largest supplier to the 6th. As industry growth remains limited and with increasing competition from lower cost supplier, IHS expects that it is likely that there will be more acquisitions in 2015.


Delta Electronics announced on 15th December 2014 that its 100% owned subsidiary Deltronics (Netherlands) B.V. will acquire Eltek ASA through public offering at NOK 11.75 per share for up to 100% of all outstanding Eltek shares with estimated value of NOK3.9 billion (USD530 million). The transaction is expected to complete by June 2015.

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