Infineon to acquire International Rectifier for $3 billion
Acquisition to strengthen Infineon semiconductor portfolio and presence in US and Asia.
Munich, Germany and El Segundo, CA – Infineon Technologies AG has announced a definitive agreement to acquire International Rectifier Corporation in an all-cash transaction valued at $40 per share or approximately $3 billion. The acquisition of International Rectifier will complement Infineon’s current offerings, add power conversion and compound semiconductor expertise, accelerate Infineon’s 300 mm thin wafer manufacturing capability, enhance the company’s presence in the US and Asia, and improve the company’s economies of scale.
“The acquisition of International Rectifier is a unique opportunity,” says Dr. Reinhard Ploss, CEO, Infineon Technologies AG. “With their great knowledge of specific customer needs and their application understanding, International Rectifier employees will contribute to Infineon’s strategic development, from product thinking to system understanding and system solutions. The combination of Infineon’s and International Rectifier’s products, technological and innovative excellence, as well as distributional strength, will unleash great potential.”
The $40 per share to be paid for outstanding shares of International Rectifier represents a premium of roughly 47.7 percent over the three month average of the company’s stock, and a 50.6 percent improvement over its closing share price on August 19. The pro-forma earnings per share (EPS) acquisition should be in line with Infineon’s average cycle target of 15 percent, and is expected to close in 2014 or early 2015.
“This transaction provides significant value to our stockholders and opens new strategic opportunities for both our customers and employees,” says Oleg Khaykin, President and CEO, International Rectifier. “By combining two complementary providers in power management solutions, International Rectifier will benefit from Infineon’s products and technologies, manufacturing and operational excellence, and greater R&D scale.”
Both the Infineon Supervisory Board and International Rectifier Board of Directors have approved the transaction, though the closing is subject to regulatory approvals and the approval of International Rectifier stockholders. For more information, visit www.infineon.com.