Infineon To Acquire International Rectifier For $3B
"˜Super power' company will make Si-, SiC- and GaN- based devices
Infineon Technologies AG will acquire International Rectifier for around $3 billion ($40 per share in an all-cash transaction), the companies announced today. The combination promises to create a "˜super power' company supplying Si-, SiC- and GaN- based power devices and integrated circuits.
Reinhard Ploss, CEO of Infineon Technologies AG, said: "The acquisition of International Rectifier is a unique opportunity. With their great knowledge of specific customer needs and their application understanding, International Rectifier employees will contribute to Infineon's strategic development from product thinking to system understanding and system solutions. The combination of Infineon's and International Rectifier's products, technological and innovative excellence, as well as distributional strength will unleash great potential."
Oleg Khaykin, president and CEO of International Rectifier, said: "This transaction provides significant value to our stockholders and opens new strategic opportunities for both our customers and employees. By combining two complementary providers in power management solutions, International Rectifier will benefit from Infineon's products and technologies, manufacturing and operational excellence and greater R&D scale."
The acquisition complements Infineon's expertise in power semiconductors and adds system know-how in power conversion, while expanding its expertise in compound semiconductors and driving economies of scale in production.
With International Rectifier, Infineon acquires an advanced manufacturer in GaN-on-Si power semiconductors. International Rectifier's expertise in low-power, energy-efficient IGBTs and Intelligent Power Modules, power MOSFETs and digital power management ICs will also integrate well with Infineon's offering in power devices and modules.
The integration of International Rectifier will generate economies of scale through optimisation of the combined entity's operating expense structure and through the acceleration of the ramp-up of Infineon's leading 300-millimeter thin wafer manufacturing capability.
Infineon will also have a much broader and stronger regional scope. International Rectifier has a strong presence in the US, the important center of innovation especially in the Connected World, and will also help to improve Infineon's position in Asia. The increase in exposure to the distribution channel will allow Infineon to meet the needs of a broader range of customers.
Commenting on the acquisition, Alex Lidow, former CEO of International Rectifier and now CEO of Efficient Power Conversion said: "We are gratified to see that Infineon recognises the excellent technology developed by International Rectifier. Especially significant is International Rectifier's excellent GaN technology. GaN-on-silicon transistors are in the process of replacing silicon-based power MOSFETs and iGBTs, and Infineon, through this acquisition, is showing their recognition of this major technology shift."
The closing of the transaction is subject to regulatory approvals in various jurisdictions and customary closing conditions, as well as approval of International Rectifier stockholders. The transaction is expected to close late in the calendar year 2014 or early in the calendar year 2015 subject to regulatory approval.