Littelfuse to acquire IXYS for USD 750 million

Littelfuse to acquire IXYS for USD 750 million

Business news |
By eeNews Europe

The transaction represents an equity value of approximately $750 million and enterprise value of $655 million. A global pioneer in the power semiconductor and integrated circuit markets, IXYS focuses on medium to high voltage power control semiconductors across the industrial, communications, consumer and medical markets. Based in Silicon Valley, IXYS serves more than 3,500 customers through its direct salesforce and global distribution partners, with reported revenues of $322 million in its fiscal 2017 with an adjusted EBITDA margin of approximately 13.5%.

With its capability to expand growth into industrial and electronics markets, the merged company is expected to have annual revenues of approximately $1.5 billion. Merged Littelfuse also expects to generate more than $30 million in annualized cost savings, with additional future value created from revenue synergies and tax rate reduction.

The combined company will benefit from heightened engineering expertise and intellectual property around high voltage and silicon carbide semiconductor technologies, it will push for an increased long-term penetration of its power control portfolio in automotive markets while increasing its presence in the semiconductor industry.

“As the largest acquisition in our 90-year history, this is an exciting milestone for Littelfuse,” said Dave Heinzmann, President and Chief Executive Officer, Littelfuse.

“IXYS’ extensive power semiconductor portfolio and technology expertise fit squarely within our strategy to accelerate our growth within power control and industrial OEM markets. The combination of Littelfuse and IXYS unites complementary capabilities, cultures and relationships.”

“IXYS will operate as the cornerstone of the combined companies’ power semiconductor business,” said Dr. Nathan Zommer, Chairman and Chief Executive Officer of IXYS. “Both Littelfuse and IXYS have long histories of innovation and customer-focused product development, and together, we will embrace the entrepreneurial spirit that has contributed to IXYS’ success in the power semiconductor and integrated circuits market.”

“The combination of IXYS and Littelfuse creates a stronger player in the power semiconductor industry, with the ability to leverage our collective resources and portfolio to create increased value for our customers,” added Uzi Sasson, President and Chief Executive Officer of IXYS. “We believe that being a part of a world-class organization like Littelfuse will provide a bright future for IXYS and the talented people at our respective companies.”

The transaction is expected to close in the first calendar quarter of 2018. Under the terms of the agreement, each IXYS stockholder will be entitled to elect to receive, per IXYS share, either $23.00 in cash or 0.1265 of a share of Littelfuse common stock, subject to proration. In total, 50% of IXYS stock will be converted into the cash election option and 50% into the stock election option.

Littelfuse –

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