Should close up $4 higher today imo.
Diodes to buy BCD Semiconductor PLC ADS (AMRN)XAddDiodes Inc. (DIOD)XAddBCD Semiconductor Manufacturing Ltd. ADS (BCDS)
Diodes Inc. /quotes/zigman/71078/quotes/nls/diod DIOD +0.65% agreed to purchase fellow chip maker BCD Semiconductor Manufacturing Ltd. /quotes/zigman/3823825/quotes/nls/bcds BCDS +2.58% for roughly $151 million, expanding its analog product portfolio and broadening its presence in China.
Diodes plans to pay $8 in cash for each BCD American Depositary share, representing just over double BCD's share price as of Wednesday's market close. China-based BCD's ADS had traded above $10 after its initial public offering early last year, but the stock dropped sharply since.
The deal, expected to close late in the first quarter of 2013, is expected to immediately benefit per-share earnings of Diodes, the company said.
"This proposed acquisition underscores Diodes' strategy to expand our market and growth opportunities through select strategic acquisitions," Diodes Chief Executive Keh-Shew Lu said.
The CEO added that BCD's established presence in Asia, with a particularly strong local market position in China, gives Diodes increased exposure to consumer, computing and communications markets there.
Diodes serves the consumer electronics, computing, communications, industrial, and automotive markets.
Diodes shares closed Wednesday at $16.91 and were inactive after hours. BCD's shares were halted after hours, after closing at $3.98.
