IXYS Corp. (NASDAQ: IXYS) shares saw an incredible gain to kick off the week after it was announced that Littelfuse Inc. (NASDAQ: LFUS) would be acquiring the firm. Overall, the transaction represents an equity value of approximately $750 million and enterprise value of $655 million.
Under the terms of the agreement, each IXYS stockholder 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. In total, 50% of IXYS stock will be converted into the cash election option and 50% into the stock election option.
For some quick background: IXYS is a player in the power semiconductor and integrated circuit markets with a focus on medium to high voltage power control semiconductors across the industrial, communications, consumer and medical markets. IXYS has a broad customer base, serving more than 3,500 customers through its direct sales force and global distribution partners.
The combined company is expected to have annual revenues of approximately $1.5 billion.
Dave Heinzmann, president and CEO of Littelfuse, commented:
As the largest acquisition in our 90-year history, this is an exciting milestone for Littelfuse, IXYS’ extensive power semiconductor portfolio and technology expertise fit squarely within our strategy to accelerate our growth within power control and industrial OEM markets. The combination of Littelfuse and IXYS unites complementary capabilities, cultures and relationships.
Shares of IXYS were last seen at $15.95, with a consensus analyst price target of $20.00 and a 52-week trading range of $10.06 to $17.80. Following the release, the stock was up about 42% at $22.75 in early trading indications Monday.
Shares of Littelfuse closed most recently at $178.26, with a consensus price target of $196.20 and a 52-week range of $116.97 to $188.60.