Littelfuse to acquire IXYS to create $1.5bn power semiconductor company
IXYS, headquartered in both California and the Netherlands, is a global pioneer in the power semiconductor and integrated circuit markets with a focus on medium to high voltage power control semiconductors across the industrial, communications, consumer and medical markets. Alongside its power business it also has the Z80 microcontroller acquired with Zilog in 2009. It has more than 3,500 customers and revenues of $322m in 2017.
The combined company is expected to have annual revenues of approximately $1.5 billion, with a broader technology platform and capability to expand growth into industrial and electronics markets. This gives Littelfuse increased long-term penetration of power control portfolio in automotive markets, expanding global content per vehicle, following its acquisition of the IGBT business from Fairchild as part of ON Semiconductor’s takeover.
“As the largest acquisition in our 90-year history, this is an exciting milestone for Littelfuse,” said Dave Heinzmann, President and Chief Executive Officer at 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.”
Zommer is currently the company’s largest stockholder with approximately 21% ownership and has entered into a voting and support agreement. Subject to the agreement’s terms and conditions, he has agreed to vote his shares in favor of the transaction. After close of the transaction, Dr. Zommer is expected to join Littelfuse’s Board of Directors
“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,” said 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.”
Littelfuse expects to achieve more than $30 million of cost savings a year within the first two years after closing the transaction in the first quarter of 2018 subject to regulatory approvals and approval by IXYS stockholders.
Founded in 1927, Littelfuse has over 10,000 employees in more than 40 locations throughout the Americas, Europe and Asia, compared to 1000 for IXYS.