IR Announces Strategic Collaboration with SankenMay 17, 2001 by Jeff Shepard
International Rectifier Corp. (IR, El Segundo, CA) announced a strategic collaboration with Sanken Electric Co. Ltd. (Japan) that includes joint design and development activity between the two power semiconductor companies for next-generation proprietary power-management products. The collaboration also includes a cross-shareholding agreement. IR has agreed to purchase approximately two percent of Sanken's shares, for about $13 million, and Sanken has agreed to purchase about 0.4 percent of IR's shares, for approximately $13 million. The IR shares to be purchased by Sanken will be newly issued pursuant to a private placement.
The collaboration is planned to include the following: joint technology development of next-generation analog ICs; joint standards for systems architectures in certain automotive, ac/dc, dc/dc and motion control application areas; and collaboration on capacity management. In addition, the collaboration will include joint sales and marketing in certain regions.
“Sanken and IR have worked very closely together for more than a decade," said Dr. Alex Lidow, CEO of IR. “We have been very successful with our joint product development activities, and both companies have benefited from greater access to the markets in Japan and the Americas. I see this new strategic effort as a natural progression of our relationship that can yield even grater benefits for both companies in the future."