Vishay Intertechnology Inc. has moved to strengthen its position in optoelectronics by agreeing to acquire the infrared components business of Infineon Technologies AG for $120 million.
The Malvern, Pa., component supplier will take over Infineon's IR development, marketing, and distribution activities in San Jose, and its plant in Malaysia. Infineon's IR business employs about 1,200 and generated revenue of $133 million in fiscal 2000, which ended in September.
The acquisition, expected to be completed by the end of this month, will bolster Vishay's offerings in optocouplers and solid-state relays, IrDT (infrared data transmission) modules, DAA (data access arrangements) kits, and custom optoelectronic modules. These parts are used for optical interfaces in PCs, cell phones, PDAs, industrial automation systems, set-top boxes, and voice/data switching and data transmission equipment.
The $120 million price tag for Infineon's IR unit is 90% of its sales and well within Vishay's acquisition target valuations, according to John Harris, an analyst at UBS Warburg LLC, New York.
"This is a good acquisition for Vishay, giving them additional strength in the infrared components area," said Harris, who also noted that Vishay remains flush with cash to carry out other acquisitions.
Vishay, whose revenue in 2000 totaled $2.5 billion, has remained acquisitive during the industry downturn as it attempts to fulfill its mission of being a one-stop component supplier by absorbing businesses whose products complement its broad line of passives, discrete semiconductors, IR communication devices, and power and analog switching ICs.
For Infineon, the deal with Vishay frees it to concentrate on developing its wireline products.
"This divestiture is another important step to streamline our communications portfolio," said Ulrich Schumacher, president and chief executive of Infineon, in a statement.
"With the sale of the infrared components business and the sale of our consumer electronics to Micronas last November, we have completed our plan to concentrate our wireline activities for the present and will continue to expand our strategic core activities in local area networks and wide area networks as well as in network access."