In a strategic move to bolster its position in the dynamic semiconductor market, Japanese chipmaker Renesas Electronics Corp has announced its plans to acquire US-based power semiconductor company Transphorm Inc for a hefty sum of $339 million. The acquisition aims to fortify Renesas’ product portfolio, catering to the escalating demand in the automotive, energy, and computing sectors.
The stock market responded positively to the news, witnessing a surge in Transphorm Inc.’s stock value. Following the announcement, trading for Transphorm opened at $4.79, a significant uptick from the previous day’s closing session at $3.79.
At the time of this publication, Transphorm Technology Inc stock (TGAN) has witnessed a surge.
Transphorm Technology Inc
Current Price: $4.76
Change : +0.97
Change (%): (25.59%)
Volume: 6.7M
Source: Tomorrow Events Market Data
According to Renesas, the acquisition will be executed at a price of $5.10 per share, representing a substantial 35 percent premium over closing price of Transphorm Inc on Wednesday. The board of directors at Transphorm has unanimously approved the definitive agreement, urging stockholders to adopt the agreement and approve the merger. Key stakeholder KKR Phorm Investors L.P., holding approximately 38.6% of Transphorm’s outstanding common stock, has entered a voting agreement with Renesas, committing to vote in favor of the transaction.
The anticipated closure of the deal is slated for the second half of the calendar year 2024, subject to Transphorm stockholder approval, regulatory clearances, and the fulfillment of customary closing conditions.
One of the notable outcomes of this acquisition is Renesas gaining access to the cutting-edge technology of Transphorm Inc in gallium nitride, a crucial next-generation material pivotal for manufacturing smaller and more power-efficient chips. Renesas plans to harness this technology to meet the burgeoning demand for power semiconductors in electric vehicles, artificial intelligence products, and renewable energy equipment.
Transphorm, headquartered in Goleta, California, is recognized as a leading designer and manufacturer of gallium nitride semiconductors. The company operates chip plants not only in its Goleta base but also in Aizuwakamatsu, Fukushima Prefecture, located in northeastern Japan.
By strategically integrating Transphorm’s expertise into its operations, Renesas aims to strengthen its global standing and play a pivotal role in shaping the future of semiconductor technology. The acquisition is poised to open new avenues for Renesas in delivering innovative solutions across diverse industries, marking a significant milestone in the ever-evolving landscape of the semiconductor market.
