IXYS is a global pioneer in the power semiconductor and integrated circuit markets with a focus on medium to high voltage power control semiconductors across theindustrial, communications, consumer and medical markets. IXYS has a broad customer base, serving more than 3,500 customers through its direct salesforce and globaldistribution partners. IXYS reported revenues of $322 million in its fiscal 2017 with an adjusted EBITDA margin of approximately 13.5%.
The combined company is expected to have annual revenues of approximately $1.5 billion, with the following strategic and financial benefits:
·Broader technology platform and capability to expand growth into industrial and electronics markets
·Increased long-term penetration of power control portfolio in automotive markets, expanding global content per vehicle
·Heightened engineering expertise and intellectual property around high voltage and silicon carbide semiconductor technologies
·Increased presence in the semiconductor industry, adding to our scale and volume
·Strong relationships and complementary overlap in major global electronics distribution partnerships enabling cross-selling
·Immediately accretive to adjusted EPS and free cash flow post transaction close (2)
·Expect to generate more than $30 million in annualized cost savings; additional future value created from revenue synergies and tax rate reduction
“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 hascontributed 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 tocreate 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 likeLittelfuse 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 and is subject to the satisfaction of customary closing conditions, including regulatory approvals andapproval by IXYS stockholders. Littelfuse expects to finance the cash portion of the transaction consideration through a combination of existing cash and additional debt.
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