Power-One Buys International Power Devices
Power-One Inc. (Camarillo, CA) announced that it has entered into a definitive agreement to acquire dc/dc converter supplier International Power Devices Inc. (IPD, Boston). Power-One has agreed to pay $31.75 million for IPD, including the assumption of debt. IPD sales during its fiscal year ended December 31, 1998, were approximately $30 million.Power-One has also agreed to acquire IPD's manufacturing facility from a separate partnership for its appraised value, which is anticipated to be in the $4-$5 million range. Additional payments may be made based on the attainment of defined operational performance through March 2000. Power-One plans to finance the acquisition with its existing cash and credit facilities. The transaction is expected to have a positive EBITDA impact and is expected to be neutral to slightly accretive to Power-One's earnings per share in 1999. Closing of the transaction is expected on January 29, 1999."We are delighted to add IPD to the Power-One Group of companies," stated Power-One Chairman, President and CEO Steven Goldman. "This acquisition addresses two of Power-One's key strategic initiatives - to gain broader exposure to the dc/dc marketplace and to lay the groundwork towards establishing a manufacturing presence in Asia."IPD President Y.C. Chang commented, "IPD brings Power-One additional technology solutions and a dc/dc product line that is one of the best in the industry. We have advanced technology in high-density dc/dc converters, which achieve higher efficiencies in smaller packages. We believe our customers' technology requirements are increasingly headed in this direction. Additionally, the Melcher sales team will give us a tremendous presence in Europe. We've wanted to have access to this market, so this provides a new avenue of growth for IPD."