TDK Corporation and Tronics Microsystems SA announced today that TDK's wholly-owned subsidiary EPCOS AG Tronics have signed a tender offer agreement pursuant to which EPCOS will launch a public tender offer for all publicly-held shares of Tronics for €13.20 per share. On a fully-diluted equity value basis, the transaction represents a value of Tronics' equity of approximately €48.65 million. This represents a 78.4% premium over Tronics' closing share price on July 7, 2016, the trading day immediately preceding the stock trading suspension, and a 62.1% premium to the volume-weighted average price during the last 60 trading days prior to this suspension.
TDK is accelerating its expansion of strategic growth products by business collaboration with strategic partners and M&A. One of the company's priority strategies is business growth in the field of sensors. Through the acquisition of Tronics, TDK would be able to further broaden its portfolio of cutting-edge sensor technologies, which currently includes temperature, pressure and magnetic/TMR-based2 sensor technologies. The integration of Tronics into TDK will open up attractive new opportunities in the promising growth markets for inertial sensors in industrial, automotive and consumer electronics and thus enable TDK to substantially expand its sensor business and provide customers with a wide range of sensor solutions.
Comments Joachim Zichlarz, TDK Senior Vice President, Corporate Officer and CFO of Electronic Components Business Company and EPCOS Chairman of the Management Board, CEO and CFO: “Tronics gives an immediate entry into the rapidly growing market for inertial sensors. The acquisition of Tronics will boost our innovativeness and market strength in one of the future’s most promising and crucial technological fields. Following the acquisition of the magnetic sensor manufacturer Micronas, which was announced in December 2015, the acquisition of Tronics represents a logical next step in TDK’s strategy to expand its activities in the sensors area. Moreover, TDK expects strong synergies with its own cutting-edge thin-film and assembly technologies.â€
Resulting from ongoing miniaturization trends, MEMS technologies have become increasingly important in the sensor market. Tronics will support this trend and open up entirely new possibilities for miniaturized sensor solutions. The company's current portfolio includes several MEMS technologies that enable inertial sensor solutions featuring multiple sensor functions in one device. Such miniaturized sensor devices are expected to be key components in emerging applications in industrial and automotive electronics, aircraft and the Internet of Things (IoT), where they will enable, for example, safer industrial robots, self-driving vehicles, drone delivery services and autonomous home appliances.
Pascal Langlois, Chairman of the Management Board and CEO of Tronics comments: “This is a great recognition for Tronics’ expertise and success in inertial products and MEMS technologies. The company will benefit from TDK’s position as a leading manufacturer of electronic components with a global salesforce and powerful manufacturing base and with excellent relationships to key players in industrial, automotive and consumer electronics markets. TDK’s solid financial basis and extensive know-how in materials and production engineering will provide a very good basis for strong future growth of Tronics’ cutting-edge sensor technologies. It is a great step in the development of the company for employees, customers and shareholders.â€
