Diodes Incorporated announces an agreement for the acquisition of Lite-On Semiconductor Corporation.
The acquisition represents the next significant step in executing Diodes’ strategic growth plan to achieve $2.5 billion in revenue by 2025, said Diodes in its statement.
The agreement is further expected to broaden Diodes Incorporated’s discrete and bipolar IC product offerings in Asia with a complementary product portfolio that will benefit from Diodes’ more extensive worldwide sales channel and will also offer cost-effective wafer fab and product assembly manufacturing capacity, enabling internal sourcing flexibility;
Keh-Shew Lu, President and Chief Executive Officer of Diodes, commented, “We look forward to further leveraging Diodes’ strong manufacturing know-how to drive increased operational and cost efficiencies, while also improving utilization of LSC’s production facilities in Taiwan and China.”
Adding his views on the proposed acquisition, David Lee, LSC President said, “We are pleased to have reached this agreement as Diodes offers us a significant opportunity to leverage their extensive sales channel, manufacturing strength and broad support infrastructure. We believe this transaction represents outstanding value for our shareholders, customers and employees alike, and we look forward to becoming a part of Diodes.”
According to both the companies statement, the aggregate consideration will be approximately $428 million. The boards of both companies have approved the transaction, which is still subject to approval by LSC shareholders as well as other customary closing conditions and regulatory approvals. The transaction is expected to close in April 2020.
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