TDK to Acquire Micronas to Further Grow the Magnetic Sensor Business
TDK Corporation and Micronas Semiconductor Holding AG have jointly announced that the two companies have entered into a definitive agreement which will see TDK launch an all cash public tender offer for all publicly held registered shares of Micronas for CHF 7.50 per share.
On a fully diluted equity-value basis, the transaction is valued at approximately CHF 214 million. This represents a 63.0 percent premium over Micronas' closing share price on December 16, 2015, the trading day immediately preceding the pre-announcement of the offer, and a 69.7 percent premium to the volume weighted average price during the last 60 trading days prior to pre-announcement of the offer.
TDK is endeavouring to further expand earnings from its five priority businesses in the three priority markets of automobiles, industrial material and ICT.
TDK's strengths in magnetic materials technologies have been broadly applied in its product line-up. In particular, magnetic sensors leveraging magnetic thin-film technologies nurtured in hard disk drive (HDD) magnetic heads are a strategic product line. Demand for the sensors has increased substantially, especially in the fields of automobiles and industrial material among TDK's three priority markets of automobiles, industrial material and ICT. Among these, a sensor that uses a TMR element (TMR sensor), which has entered full-scale mass production this year, offers extremely high precision and is also able to be miniaturized. It has drawn widespread attention from in and outside of Japan as an optimal highly functional sensor, mainly for the automobile industry.
Micronas is a supplier of hall-effect sensors for the automotive industry with more than 30 years automotive experience. Micronas today offers the world's broadest range of hall-effect sensors and embedded motor controllers for the automotive and industrial market.
Hall-effect sensors from Micronas are used to detect end-position or to measure linear or angular movements in an extremely wide range of chassis and safety, body and comfort, and powertrain applications in the car. Micronas offers its customers innovative key solutions for their ever more demanding applications. Products from Micronas are known for quality and reliability. These core attributes, together with the commitment to functional safety, excellent logistics and safe supply are making the company a reliable partner for its customers.
This acquisition will expand TDK's sensor business by combining its magnetic sensor business, with strengths in magnetic materials, and Micronas' products, technologies, and expertise, in particular in hall sensors. By fully harnessing synergies between the two companies, TDK will be able to provide a more detailed response to customers and aims to increase its competitiveness in the global market and to expand its business.
Takehiro Kamigama, President and CEO of TDK Corporation comments: "Thanks to an extensive experience in the automotive industry and considerable human talent within Micronas, we are able to significantly strengthen our magnetics technology capabilities as TDK's core technology and we also intend to develop a new business field".
Shigenao Ishiguro, Senior Vice President Corporate Officer and CEO of Magnetic Heads and Sensors Business Company of TDK comments: "We believe this acquisition is a perfect combination that enables complementarities from production to sales within both companies. TDK aims to be the leading company in the magnetic sensor market".
