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Infineon to Buy International Rectifier for $3 Billion
By Alex Sherman, Amy Thomson and Alex Webb Aug 20, 2014 4:01 PM MT

Infineon Technologies AG (IFX), Germany’s largest chipmaker, agreed to buy International Rectifier Corp. for about $3 billion in cash, adding to its power-management technology business.

Infineon will pay $40 a share for El Segundo, California-based International Rectifier in a deal approved by both companies’ boards, Infineon said in a statement yesterday. That’s 51 percent more than the stock’s close before the deal was announced. The transaction is the Neubiberg, Germany-based company’s biggest acquisition, according to data compiled by Bloomberg. It’s projected to be completed by early 2015, subject to regulatory approval.

Chief Executive Officer Reinhard Ploss, seeking a deal since taking the top job in 2012, is betting on rising demand for chips such as those used in car electronics and to manage battery power in mobile devices. The deal also puts Infineon closer to the technology hub of Silicon Valley.

“It is very important for us to be in the U.S. and close to the highly innovative region of California,” Ploss said in a conference call. “International Rectifier (IRF) does that.”

International Rectifier makes chips that help manage power flow in devices including satellites, cars, lighting systems and aircraft. The company reported a 13 percent increase in revenue in the year ending in June to $1.11 billion, and swung to a profit of $58.7 million after reporting an $88.8 million loss previously. Its shares jumped 47 percent to $39.10 at yesterday’s close in New York.

More......http://www.bloomberg.com/news/2014-08-20/infineon-said-to-hold-talks-on-2-billion-u-s-chipmaker-deal.html