Shares of Diodes Incorporated (NASDAQ: DIOD), the Plano, Texas-based worldwide manufacturer and supplier of application-specific standard products within the discrete, logic and analog semiconductor markets, have edged higher in early trading today after the company agreed to acquire BCD Semiconductor Manufacturing Limited (ADR) (NASDAQ: BCDS), a leading analog integrated device manufacturer.
Under the terms of the agreement, each ADS of BCD Semiconductor, which represent six ordinary shares of BCDS common stock, will be converted into the right to receive $8 in cash, without interest. The transaction has been valued at $151 million and has been approved by the Board of Directors of both companies. The acquisition is expected to be completed in the first quarter of 2013 or early in the second quarter.
DIOD expects the acquisition of BCDS to be immediately accretive to its GAAP earnings per share. The transaction also strengthens the company’s analog product portfolio by expanding its standard linear and power management offerings. It will also boost DIOD’s presence in Asia.
Dr. Keh-Shew Lu, President and CEO of Diodes, said that the proposed acquisition underscores DIOD’s strategy to expand its market and growth opportunities through select strategic acquisitions. Dr. Lu said that the transaction will greatly enhance the company’s analog product portfolio by expanding its standard linear and power management offerings, including AC/DC and DC/AC solutions for power adapters and chargers, as well as other electronics products.
DIOD shares have risen sharply in early trading today. At last check, DIOD shares were trading 5.62% higher at $17.86 on volume of 48,927. The stock hit an intra-day high of $17.99 in trading earlier today.
Year-to-date, DIOD shares have fallen more than 17%, underperforming the broad market.
Shares of BCD Semiconductor, meanwhile, are up nearly 95% to $7.75 in early trading today.
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