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Diodes looks to buy Lite-On Semi

Diodes Inc is set to buy Lite-On Semiconductor of Taiwan in a deal that values the company at over $420m.

The 29 year-old Lite-On is the world’s largest AC/DC GPP bridge supplier and makes components for switching power supplies and system power supplies.

Lite-On had revenues of $203 million in the first seven months of this year down 10% y-o-y.

Commenting on the transaction, Dr. Keh-Shew Lu, President and CEO of Diodes, said, “In combination with our strong organic growth, this proposed acquisition underscores Diodes’ use of acquisitions to accelerate the attainment of our next strategic goal of $2.5 billion in annual revenue and $1.0 billion in annual gross profit by 2025.

"This transaction will expand our discrete business in Asia, complementing our existing product lines with offerings at additional price points, especially for cost-sensitive applications. LSC’s contact image sensor business also extends Diodes’ footprint, representing a new market where Diodes can participate. Additionally, LSC’s wafer fabs and assembly sites provide Diodes with incremental manufacturing capacity as well as the opportunity for increased manufacturing flexibility and cross-regional internal dual-sourcing.”

Diodes said that it expects to fund the acquisition primarily with proceeds from a new financing arrangement co-led by Bank of America, PNC Bank and Wells Fargo Securities.

Author
Neil Tyler

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