Littelfuse said Monday it has agreed to acquire IXYS Corporation (IXYS), a maker of power semiconductors and mixed-signal integrated circuits, for $750 million in cash or stock. Under the agreement, each IXYS shareholder may receive either $23 in cash or 0.1265 Littelfuse shares per share held. IXYS closed at $15.95 on Friday, in a 52-week range between $10.06 and $17.80.
Littelfuse said that in total, 50% of IXYS stock will be converted into the cash election option and 50% into the stock election option. IXYS had revenue of $322 million in fiscal 2017 and the combined company is expected to have annual revenues of approximately $1.5 billion, Littelfuse said. The deal is expected to be immediately accretive to adjusted earnings per share and free cash flow after it closes and is seen generating more than $30 million in annualized cost savings, additional future value created from revenue synergies and tax rate reduction.