Wednesday, August 20, 2014

Technology companies: Infineon is daring but the vast … – THE WORLD

Technology companies: Infineon is daring but the vast … – THE WORLD

The semiconductor manufacturer Infineon ventures after years without major acquisitions from cover. The company buys the specialized power management semiconductor manufacturer International Rectifier California for the equivalent of around 2.25 billion euros. This was confirmed by the company on Wednesday evening.

For many years, it is speculated that the Company could venture a purchase. CEO Reinhard Ploss since he took office two years ago, already is searching for a suitable acquisition candidates. But always talks to the price expectations had failed.

was with the American company International Rectifier, headquartered in El Segundo at the Santa Monica Bay in Los Angeles Infineon but agree. Munich also provide for a premium of 51 percent on the most recent stock price of the company. An industry-standard charge is that, puts it at Infineon.

International Rectifier had last fight with wicked problems. The company had to respond to a weaker demand five years ago with some massive layoffs. It was followed by the closure of the main plant in El Segundo. In the past two years, the company wrote some heavy losses. Together with Infineon the conversion will now go ahead even faster.

Infineon itself should bring much understanding of the situation at Internation Rectifier. The company itself had fallen in the crisis following the collapse of U.S. investment bank Lehman Brothers in trouble and had to send in the bankruptcy even the memory chip subsidiary Qimonda.



Good news for Infineon Dresden site

The former CEO Peter Bauer managed the renovation by Infineon consistently established as a specialist in niches. Infineon is about the second largest manufacturer of semiconductor electronics for the automotive industry.

With the acquisition of Internation Rectifier, Infineon now enhanced, especially in the area of ​​so-called energy management systems, which can also include electronic switches.

International Rectifier is a specialist in systems that operate at low voltages. The found, for example in small motors of appliances, in computers and game consoles. The company would complement each other very well in this regard Infineon. The Munich are traditionally more active in areas where high voltages are incurred. For this purpose, as well as trains but also include larger motors in household appliances.

The acquisition brings Infineon thus closer to the goal will not only individual components but entire systems of components zuliefern to which are coordinated. “The acquisition of International Rectifier is a unique opportunity,” said chief executive Reinhard Ploss. “International Rectifier will help with its understanding of customer needs and applications for system understanding at Infineon strategic development of product thinking.”

The takeover is good news especially for the employee at Infineon Dresden site. Here Infineon has built an ultra-modern manufacturing facility, which allows so-called wavers to produce chips on much larger disks. The problem is that this 300-millimeter technology needs high volumes to be profitable. International Rectifier could provide some mass products available to future further utilize Dresden.

Infineon wants to also secure access to a new technology through the acquisition. International Rectifier is an expert in the production of semiconductors based on gallium nitride. These semiconductors are indeed in the purchase of expensive, but much more powerful than conventional semiconductors. Those used in computer servers. In addition, Infineon wants to make up the international cooperation with the future U.S. subsidiary. “For us it is important to be in the United States and in the vicinity of the highly innovative region California,” Reinhard Ploss said. The CEO also hopes that Infineon may in the future will increasingly appeal through the distribution network of International Rectiifer smaller companies as customers.



“What lies before us is a great piece of work”

According to Infineon is confident that the reorganization of International Rectifier succeed. Currently, the company writes still a relatively low profit margin of eight percent. Already in the second year after the acquisition it will be 15 percent, announced Infineon’s chief financial officer Dominik Asam. Although Infineon is after a takeover money to invest for the conversion of the U.S. subsidiary. However, these investments are then to be shouldered out of current cash. The transaction is expected to have a positive effect on the profit already in the financial year following the acquisition.

The takeover would like Infineon existing cash and through fully guaranteed loans amounting to finance a total of 1.5 billion euros. If the antitrust authorities gave their consent, the transaction could be completed by the end of this or early next year. Infineon is in a strong position. Given good shops Reinhard Ploss could recently raise our forecast for the current fiscal year. This year, sales are expected to climb to more than four billion euros. Late last year, the cash balance of Infineon

was 1.9 billion euros. Nevertheless, the head of the company is under no illusions what the coming months. “What lies before us is a great piece of work,” said Reinhard Ploss for the forthcoming integration of International Rectifier – since he had just set the signature under the contract

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