Advanced Energy announces cash bid for XP Power Limited
Advanced Energy Industries, Inc., a global leader in highly engineered, precision power conversion, measurement, and control, has announced a possible offer of £19.50 per share in cash to acquire the entire issued and to be issued shares of Uk-based XP Power Limited.
This follows three earlier all-cash proposals to the Board of XP Power each of which has been at a significant premium to the share price at the time of each respective proposal, but the each of these proposals were rejected.
The possible acquisition of XP Power is consistent with Advanced Energy’s growth strategy, but the company will remain price disciplined when considering any potential acquisitions, including the potential acquisition of XP Power.
“We believe that the proposed offer for XP Power provides compelling value for both Advanced Energy’s and XP Power’s shareholders,” said Steve Kelley, the president and CEO of Advanced Energy. “By expanding our portfolio of products and technologies, and combining our technical capabilities, we believe we will be better able to meet the growing needs of our customers.”
Advanced Energy’s proposed offer is consistent with the company’s strategy to focus on precision power and deliver more value to customers in Industrial, Medical and Semiconductor applications. Advanced Energy’s strategy is to grow revenue with highly engineered customized power conversion offerings. XP Power’s engineering capabilities and product portfolio would complement Advanced Energy’s existing technology and product base.
If completed, the acquisition will extend Advanced Energy’s ability to serve its customers with a broader and deeper set of products and technologies. For semiconductor equipment use cases, the acquisition of XP Power would expand a portfolio of embedded system power products, which would broaden Advanced Energy’s ability to support its OEM customers. For Industrial and Medical applications, the acquisition of XP Power would complement Advanced Energy’s offerings and extend its geographic footprint with an expanded presence in the U.S., Europe, and Asia Pacific.
Advanced Energy is leveraging its strong balance sheet with over $1.0 billion of cash on hand and low-cost debt to create significant long-term value for its shareholders.
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