Featured Company News – Littelfuse Acquires IXYS; Set to Establish Presence in the Power Semiconductor Market

LONDON, UK / ACCESSWIRE / August 30, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Littelfuse, Inc. (NASDAQ: LFUS), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=LFUS. The Company announced on August 28, 2017, that it has entered into a definitive agreement with IXYS Corp. (NASDAQ: IXYS) pursuant to which Littelfuse will acquire all the outstanding shares of IXYS in a cash and stock transaction. The transaction represents an equity value of about $750 million and an enterprise value of $655 million. Under the terms of the agreement, each IXYS shareholder will be entitled to elect to receive, per IXYS share, either $23.00 in cash, or 0.1265 of a share of Littelfuse common stock, subject to proration. For immediate access to our complimentary reports, including today’s coverage, register for free now at:

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At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on LFUS and IXYS. Go directly to your stock of interest and access today’s free coverage at:

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http://protraderdaily.com/optin/?symbol=IXYS

The Announcement

Under the terms of the announcement, 50% of IXYS stock will be converted into the cash election option and 50% into the stock election option. The combined Company is expected to have annual revenues of about $1.5 billion, with multiple strategic and financial benefits, including:

Broader technology platform and the ability to expand growth into industrial and electronics sectors.
Greater long-term penetration of power control portfolio in automotive markets, hence expanding global content per vehicle.
Increased engineering expertise and intellectual property around high voltage and silicon carbide semiconductor technologies.
Elevated presence in the semiconductor industry, adding to the Littelfuse’s scale and volume.
Immediately accretive transaction to adjusted earnings per share (EPS) and free cash flow post the close of the transaction.

The Acquisition

This acquisition is the largest by Littelfuse in its 90-years history. The extensive power semiconductor portfolio and technology expertise from IXYS are complementary with the Company’s strategy to accelerate growth within power control and industrial OEMs markets. IXYS will operate as a significant part of the combined venture’s power semiconductor business. The combination of IXYS and Littelfuse is expected to create a long-term player in the semiconductor industry with the ability to leverage the collective resources and portfolio to create increased value for the customers.

Highlights of the Transaction

The transaction is expected to be immediately accretive to Littelfuse’s adjusted EPS and free cash flow in the first full year post the close of the transaction, excluding any acquisition and integration-related costs. Littelfuse expects to achieve over $30 million of annualized cost savings within the first two years post the transaction close. In the long-term, the joint venture is expected to create significant revenue synergy opportunities given the Companies’ complementary offerings, as well as benefits from future tax rate reduction.

About IXYS Corp.

IXYS is a global leader in the power semiconductor and integrated circuit markets with a primary focus on medium to high voltage power control semiconductors across the industrial, communications, consumer, and medical markets. IXYS has a large customer base, serving more than 3,500 customers through its direct salesforce and global distribution partners. IXYS reported net revenues of $322 million in FY17 with an adjusted EBITDA margin of about 13.5%.

Last Close Stock Review

At the closing bell, on Tuesday, August 29, 2017, Littelfuse’s stock climbed 2.34%, ending the trading session at $178.33. A total volume of 297.63 thousand shares have exchanged hands, which was higher than the 3-month average volume of 130.69 thousand shares. The Company’s stock price soared 10.11% in the last three months, 7.03% in the past six months, and 40.42% in the previous twelve months. Moreover, the stock rallied 17.50% since the start of the year. The stock is trading at a PE ratio of 28.08 and has a dividend yield of 0.74%. The stock currently has a market cap of $4.03 billion.

On Tuesday, August 29, 2017, the stock closed the trading session at $22.35, slightly down 0.22% from its previous closing price of $22.40. A total volume of 2.72 million shares have exchanged hands, which was higher than the 3-month average volume of 441.06 thousand shares. IXYS Corp.’s stock price skyrocketed 51.53% in the last three months, 78.80% in the past six months, and 94.18% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have soared 87.82%. The stock is trading at a PE ratio of 30.53. At Tuesday’s closing price, the stock’s net capitalization stands at $726.38 million.

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