Emerson to Acquire Artesyn Technologies

February 01, 2006 by Jeff Shepard

Emerson and Artesyn Technologies today announced that Artesyn will become part of Emerson Network Power. Emerson will acquire Artesyn for $11 a share in cash (about $500 million net of acquired cash) pending customary regulatory approvals and approval by Artesyn shareholders.

The agreement brings additional embedded power conversion technologies to Emerson Network Power's existing portfolio of solutions for customers in the enterprise computing, data, and telecommunications industries. Artesyn provides original equipment manufacturers (OEMs) with advanced power conversion equipment as well as hardware and software subsystems for a range of communication applications.

"Artesyn's focus on technology, global presence and complementary marquee customer relationships make it a great strategic fit with Emerson Network Power to help us better serve important customers in key markets around the world," said David N. Farr, Emerson chairman, chief executive officer and president.

Artesyn Technologies, with sales in 2005 of about $420 million, operates globally with design, manufacturing, sales, and service facilities throughout Asia, Europe, and North America.

"In addition to providing Artesyn shareholders with full value, our customers will benefit from Emerson's extensive international infrastructure to successfully meet their evolving needs," said Joseph O'Donnell, Artesyn's CEO. "The synergies will provide the scale, resources, and financial flexibility to take our leading technology to the next level."

PowerPulse.Net blog by Jeremiah Bryant

"Power-One has to be at least a little bit nervous about this acquisition," said Jeremiah Bryant, research analyst for The Darnell Group, in a blog. "Artesyn's resources for litigation expenses increased. While this does not affect the technical merit of Power-One's patent infringement claims pertaining to digital point-of-load converters, it may make the case that much harder to win."

Artesyn designs, manufactures and sells power conversion and embedded board solutions for infrastructure applications in server and storage, networking, wireless, and telecommunications systems. The company's products are used in middle- to high-end servers, data storage devices, routers, hubs, high-speed modems, radio frequency amplification systems, base station controllers and transceivers.

Emerson Network Power, an Emerson business, serves the needs of telecommunications networks, data centers, health care and industrial facilities worldwide with a spectrum of reliable power solutions, including inbound power, connectivity, power supplies, power systems and precision cooling. Sales in fiscal 2005 were $3.3 billion. Sales for its parent company in fiscal 2005 were $17.3 billion.