FRANKFURT: German semi-conductors giant Infineon said late Wednesday it will acquire its US rival International Rectifier for $3.0 billion (2.3 billion euro).
"Infineon Technologies and International Rectifier announced that they have signed a definitive agreement under which Infineon will acquire International Rectifier for $40 per share in an all-cash transaction valued at approximately $3.0 billion," the German company said in a statement.
"The acquisition combines two semiconductor companies with leadership positions in power management technology," the statement said.
"Infineon will benefit significantly from greater economies of scale as well as a larger regional footprint."
"The combination of Infineon's and International Rectifier's products, technological and innovative excellence, as well as distributional strength will unleash great potential," said Infineon chief executive Reinhard Ploss.
International Rectifier CEO Oleg Khaykin said the deal "provides significant value to our stockholders and opens new strategic opportunities for both our customers and employees.
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 research and developement scale."
Infineon said it financed the acquisition using cash-on-hand and 1.5 billion euros in credit facilities.
The transaction price represented a premium of approximately 47.7 percent over the average share price of International Rectifier during the last three months and a premium of approximately 50.6 percent over the closing share price of International Rectifier on August 19, the statement said.
The deal was still subject to regulatory approvals, as well as by International Rectifier shareholders and was expected to close "late in 2014 or early in 2015." (AFP)