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Diodes to acquire Zetex for $182M

Posted: 09 Apr 2008 ?? ?Print Version ?Bookmark and Share

Keywords:analog IC? ASSP? acquisition?

U.K.-based analog IC company Zetex plc and ASSP manufacturer Diodes Inc. have reached agreement on the terms of a recommended acquisition of Zetex by Diodes.

Under the terms of the proposal, Zetex shareholders will receive about $1.72 in cash for each Zetex share, valuing the entire issued and to be issued ordinary share capital of Zetex at approximately $182 million.

The transaction is subject to the approval of Zetex shareholders and following such approval, is expected to complete in June 2008. Undertakings to support the transaction have already been received from shareholders representing approximately 56.5 percent of Zetex's existing issued ordinary share capital.

Zetex and Diodes directors believe that a combination of the two businesses will strengthen the position of the enlarged group as a global provider of analog and discrete semiconductor solutions to the consumer electronics, computing, communications, industrial and automotive markets. In addition, the increased breadth of products, consolidation of supply chain infrastructure, improved distribution channels, additional market focus and new cross-selling opportunities resulting from the transaction should provide significant benefits for customers and employees of both groups.

"The businesses are remarkably complementary in a number of respects, not least in product range and sector focus," commented Hans Rohrer, CEO of Zetex. "The combination of the two companies will create a very strong product portfolio and enable us to accelerate our growth in Asia Pacific whilst Diodes will benefit from our strength in Europe. The advantages to our customers and employees of a larger organization in terms of selling, manufacturing and product development are clear."

Keh-Shew Lu, president and CEO of Diodes, added, "Zetex will contribute a range of new discrete and analog products and capabilities that will aid deeper penetration of our key end-markets including consumer, computing and communications. Zetex brings a strong management team and skilled employees together with an attractive customer base, which complements our geographical presence and helps expand our addressable markets"

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