Renesas to buy Transphorm for automotive GaN boost
Renesas Electronics is to buy struggling GaN pioneer Transphorm for $339m.
A subsidiary of Renesas is to acquire all the stock of Transphorm for $5.10 per share in cash, representing a premium of 78% over the last average in the last three months. The company had been looking for a
The acquisition will provide Renesas with in-house gallium nitride (GaN) technology to expand its reach into fast-growing markets such as EVs, computing (data centres, AI, infrastructure), renewable energy, industrial power conversion and fast chargers/adapters.
This will help Renesas take on Infineon Technologies, which last year acquired GaN Systems for its automotive GaN customers and expertise, and sits alongside the silicon carbide (SiC) and IGBT power device activity at Renesas for electric vehicles.
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Renesas will implement Transphorm’s auto-qualified GaN technology to develop new enhanced power solution offerings, such as X-in-1 powertrain solutions for EVs, along with using its leadless packaging technology for smaller power designs in computing, energy, industrial and consumer applications.
Demand for GaN is predicted to grow by more than 50 percent annually, according to an industry study.
Transphorm had raised over $100m from investors including Marelli in Italy and had significant debt financing from Japanese industrial equipment maker Yaskawa since its reverse merger in 2020.
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“Transphorm is a company uniquely led by a seasoned team rooted in GaN power and with origins from the University of California at Santa Barbara,” said Hidetoshi Shibata, CEO of Renesas. “The addition of Transphorm’s GaN technology builds on our momentum in IGBT and SiC. It will fuel and expand our power portfolio as a key pillar of growth, offering our customers the full ability to choose their optimal power solutions.”
“Combined with Renesas’ world-wide footprint, breadth of solution offerings and customer relationships, we are excited to pave the way for industry-wide adoption of WBG materials and set the stage for significant growth. This transaction will also allow us to offer further expanded services to our customers and deliver significant immediate cash value to our stockholders,” said Dr. Primit Parikh, Co-founder, President and CEO of Transphorm and Dr. Umesh Mishra, Co-founder and CTO of Transphorm. “Additionally, it will provide a strong platform for our exceptional team to further Transphorm’s leading GaN technology and products.”
The major shareholder KKR Phorm Investors L.P., which holds approximately 38.6% of Transphorm’s outstanding common stock, has entered into a customary voting agreement with Renesas to vote in favour of the transaction.
The transaction is expected to close in the second half of calendar year 2024, subject to Transphorm stockholder approval, required regulatory clearances and the satisfaction of other customary closing conditions.
The deal is likely impact on existing partnerships Renesas has in GaN designs, particularly with EPC.
www.renesas.com; www.transphormusa.com
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