Transphorm bought out in $339M deal
Goleta-based Transphorm, a spinout from UC Santa Barbara, was purchased by Renesas Electronics Corporation on Jan. 10 in a deal worth approximately $339 million.
Tokyo-based Renesas is a supplier of advanced semiconductor solutions while Transphorm is a leader in gallium nitride power semiconductors.
According to details of the purchase, Renesas will acquire Transphorm for $5.10 per share in cash, presenting a premium of approximately 35% to Transphorm’s closing price on Jan. 10 and a premium of approximately 56% to the volume weighted average price over the last twelve months.
The deal is expected to close in the second half of 2024.
The acquisition will provide Renesas with in-house GaN technology, which the company believes is a key next-generation material for power semiconductors, expanding its reach into fast-growing markets such as EVs, computing (data centers, AI, infrastructure), renewable energy, industrial power conversion and fast chargers/adapters.
“The addition of Transphorm’s GaN technology builds on our momentum in IGBT and SiC. It will fuel and expand our power portfolio as a key pillar of growth, offering our customers the full ability to choose their optimal power solutions,” Hidetoshi Shibata, CEO of Renesas, said in a press release.
According to a company press release, demand for highly efficient power systems is increasing as building blocks for carbon neutrality.
To address this trend, an industry-wide transition toward wide bandgap (“WBG”) materials, represented by silicon carbide (“SiC”) and GaN, is also being seen.
In a joint statement, co-founders Dr. Primit Parikh and Umesh Mishra noted that Renesas’ worldwide footprint, amount of solution offerings and overall customer relationships, will help pave the way for “industry-wide adoption of WBG materials and set the stage for significant growth.”
“This transaction will also allow us to offer further expanded services to our customers and deliver significant immediate cash value to our stockholders,” the two co-founders said.
“Additionally, it will provide a strong platform for our exceptional team to further Transphorm’s leading GaN technology and products.”
Citi is serving as financial advisor to Renesas and Goodwin Procter LLP and Covington & Burling LLP are serving as legal counsel. BofA Securities, Inc. is serving as financial advisor to Transphorm and Wilson Sonsini Goodrich & Rosati, Professional Corporation is serving as legal counsel.