Transphorm Raises $21 Million and Completes Reverse MergerMarch 03, 2020 by Transphorm
The merger helps complete the financing to advance Transphorm's GaN power conversion business.
Transphorm, Inc., a pioneer in the development and manufacturing of high reliability-high performance gallium nitride (GaN) semiconductors for power conversion, announced today it raised $21.5 million in a private placement equity financing. Prior to the financing, Transphorm Technology, Inc. (“Transphorm”) completed a reverse merger with Peninsula Acquisition Corporation (“Peninsula”), a public Delaware corporation, whereby Transphorm became a wholly-owned subsidiary of Peninsula. Following the merger, Peninsula changed its name to Transphorm, Inc., and will continue the historical business of Transphorm. Previous members of Transphorm’s Board of Directors, David Kerko, Eiji Yatagawa, Brittany Bagley, Mario Rivas, and Dr. Umesh Mishra will remain as directors of the Company.
With its leading technology position, Transphorm has developed and is in the market with, multiple families of products that are the building blocks for an array of power converter and inverter systems. Transphorm’s GaN products switch much faster than traditional silicon-based solutions and provide higher efficiency with increased system power density while enabling system size reduction. Transphorm has a proven track record of high quality, high reliability (Q+RTM) solutions as well as a series-of-firsts including the first JEDEC and Automotive (AEC-Q101) qualification of high voltage GaN devices. Its robust GaN platform makes GaN products easy to use and integrate in systems with standard drive electronics.
Given the clear advantages of GaN, Transphorm has begun to see meaningful customer adoption in power adapters/fast chargers, power supplies for data-centers, communication infrastructure, and broad industrial applications. In addition, Transphorm continues to see heightened interest from automotive EV suppliers for chargers, converters, and inverters. This is in-line with the ongoing overall adoption of GaN solutions in power conversion applications which, per the Company’s analysis, amounts to an accessible Total Available Market for GaN (GaN TAM) of approximately $3.1 billion in 2024. Factoring in GaN market adoption rates, market research firm Yole Développement (“Yole”) predicts robust growth and that GaN power device revenues may approach $400 million by 2023.1
“We are thrilled to announce this new equity financing which will support and accelerate our product development, manufacturing, and sales for our GaN power solutions,” said Mario Rivas, CEO. Mr. Rivas continued, “We believe the success of this financing demonstrates confidence and support in Transphorm’s team, technology and products by both our current partners as well as our new investors.”
“Our core capabilities in GaN epitaxy, design, process, and circuit applications have positioned us well to innovate and address the power conversion systems needs of our customers,” said Dr. Primit Parikh, Co-founder, and COO. “We have created an integrated device model and developed highly reliable, high-performance GaN device technology, as well as amassed one of the largest intellectual property portfolios in the GaN power industry,” Dr. Parikh added.
According to external patent reports from KnowMade, a specialist in the research and development of scientific and patent information, “Transphorm today has the dream patent portfolio for all those who want to benefit from strategic advantages in the GaN power electronics market.”2
The financing was led by existing investors including an affiliate of Kohlberg Kravis Roberts & Co. L.P. (“KKR”), a new strategic investor, Marelli, and new prominent institutional investors. B. Riley FBR, Inc. (member FINRA/SIPC) was the lead placement agent and Craig-Hallum Capital Group LLC was the co-placement agent. Montrose Capital Partners was the sponsor for this transaction.
The securities issued in the merger and sold in the private placement have not been registered under the Securities Act of 1933 and may not be resold absent registration under, or exemption from registration under, such Act.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.