Advanced Energy Industries, Inc. (Nasdaq: AEIS), a global provider of highly engineered, precision power conversion, measurement and control solutions, has announced that it has completed the previously announced acquisition of Artesyn Embedded Technologies´ Embedded Power business, the company said.
With this highly strategic acquisition, Advanced Energy becomes a highly diversified, pure play power house with a global platform for accelerated earnings growth.
Strategic benefits of this acquisition include:
Creates a premier global power conversion company with enabling critical power technologies and over USD 1.3 billion in annual revenue, based on 2018 combined historical results.
Triples AE´s addressable market to USD 7.5 billion by adding new attractive growth verticals in hyperscale data center, 5G wireless, industrial and medical technologies.
Solid strategic fit with highly complementary technologies, product portfolios and core competencies in highly engineered, application-specific power solutions for key OEMs in demanding applications.
Under the terms of the share purchase agreement, the total consideration for this acquisition was approximately USD 400 million. Advanced Energy paid approximately USD 375 million in cash at closing and assumed approximately USD 25 million in net liabilities, including estimated adjustments for net working capital and acquired cash.
In conjunction with this transaction, AE completed the previously announced credit financing, consisting of USD 350.0 million of a senior unsecured term loan A facility and an untapped USD 150.0 million senior unsecured revolving facility, before any fees, led by Bank of America, N.A., with commitments from HSBC Bank USA, N.A., Bank of the West and Citibank, N.A.
The acquisition of Artesyn Embedded Power is expected to be immediately accretive to earnings on a non-GAAP basis and generate over USD 20 million of annualized synergies within 18-24 months and USD 40 million of total synergies long-term.
Advanced Energy is a global provider of the design and manufacturing of highly engineered, precision power conversion, measurement and control solutions for mission-critical applications and processes. AE´s power solutions enable customer innovation in complex semiconductor and industrial manufacturing applications. For more information, visit www.advancedenergy.com.