Lite-On Shareholders Approve the Proposed Acquisition by Diodes Inc

October 28, 2019 by Paul Shepard

Diodes Incorporated today announced that Lite-On Semiconductor Corporation held a Special Meeting of Shareholders on October 25, 2019 during which the proposed acquisition by Diodes and the associated Share Swap Agreement were approved.

The combined companies will have trailing twelve months reported revenue of approximately $1.5 billion and positive EBITDA of $333.1 million. This acquisition represents next significant step in executing Diodes' strategic growth plan to achieve $2.5 billion in revenue by 2025.

LSC entered into an Agreement with Diodes under which Diodes, through an indirect 100% owned subsidiary established in Taiwan, will conduct a share swap transaction. At the effective date of the transaction, each issued and outstanding share of LSC stock will be converted into the right to receive TWD 42.50 in cash, or $1.37 USD, as of June 30, 2019 without interest. The aggregate consideration of the transaction will be approximately $428 million.

The transaction is subject to customary closing conditions and regulatory approvals. It is expected to close in April 2020. Diodes expects to fund the purchase price of the acquisition primarily with proceeds from a new financing arrangement co-led by Bank of America, PNC Bank and Wells Fargo Securities.

About Diodes Incorporated

Diodes Incorporated is a leading global manufacturer and supplier of high-quality, application-specific standard products within the broad discrete, logic, analog, and mixed-signal semiconductor markets. The company serves the consumer electronics, computing, communications, industrial, and automotive markets. Its products include diodes, rectifiers, transistors, MOSFETs, protection devices, function-specific arrays, single gate logic, amplifiers and comparators, Hall-effect and temperature sensors, power management devices, including LED drivers, ac-dc converters and controllers, dc-dc switching and linear voltage regulators, and voltage references along with special function devices, such as USB power switches, load switches, voltage supervisors, and motor controllers. Diodes also has timing, connectivity, switching, and signal integrity solutions for high-speed signals.