Boston, MA 08/21/2014 (wallstreetpr) – As per the new signed definitive agreement between Infineon Technologies and International Rectifier Corporation (NYSE:IRF), the former will acquire International Rectifier for US-Dollar 40 a share, making it a deal valued around US-Dollar 3 billion. It will be an all-cash transaction. Infineon and International Rectifier, both have dominant positions in power management technology.
The significance
Infineon will be able to expand its product offerings with the acquisition of International Rectifier Corporation (NYSE:IRF). The customers will have a broader range of products and services to choose from. The economies of scale will come into play resulting into added benefits for Infineon. Also, it will have a greater presence in the various markets.
Views of Infineon Management
Dr. Reinhard Ploss, the CEO of Infineon, said that acquisition of International is a great opportunity which will allow Infineon to use its experience and knowledge of consumer needs. International Rectifier has got great application understanding. It will help Infineon to work better on strategic development in all the aspects.
Views of International Rectifier Management
Oleg Khaykin, President and the CEO of International Rectifier Corporation (NYSE:IRF), stated that the transaction will create a long-term value for the stockholders. It will be a new platform for strategic growth for both the customers and employees. International Rectifier operations will get a boost from the Infineon manufacturing, technologies and R&D scale.
The details
The transaction is approved by both the parties. It will seek the regulatory approvals and the nod from the International Rectifier stockholders. If everything goes well, the transaction will complete in start of year 2015. The transaction will be funded using cash-on-hand. It can use the fully underwritten credit facilities amounting to Euro 1.5 billion in total.
The product portfolio of International Rectifier Corporation (NYSE:IRF) and Infineon complement each other well. International Rectifier has got the expertise in intelligent power modules, Digital power management ICs, Power MOSFETs and energy efficient IGBTs that are perfect integration products with Infineon’s product offering of power devices and modules.
