EL SEGUNDO, Calif. -- International Rectifier here has agreed to acquire Zing Technologies Inc. for approximately $28.5 million in cash.
Zing's wholly-owned subsidiary, Omnirel, supplies power semiconductor modules and components, which complement IR's fast-growing proprietary control and subsystems business. The control and subsystems business of the combined operations has annualized revenue of about $100 million, according to International Rectifier.
For the past year, Zing, located in Valhalla, N.Y., has been looking for a buyer. Omnirel, which is its only operating unit, manufactures and sells high reliability multi-chip power semiconductors, integrated power modules and packaged semiconductor components for the military, industrial and high-end commercial markets.
The purchase price for the transaction is $15.36 per share. International Rectifier will commence a cash tender offer for the outstanding shares of Zing by early February and expects to complete the tender offer in March.
"This acquisition accelerates the growth of our proprietary control and subsystems business, enhances our product offerings for aerospace and other lucrative high-reliability applications," said Alex Lidow, International Rectifier's CEO, "and provides greater access to customers who can benefit from the combination of IR and Omnirel technologies to manage their power requirements."
The acquisition is subject to certain conditions, including at least 66.7% of Zing's outstanding stock on a fully diluted basis being tendered without withdrawal before IR's offer expires, as well as the expiration of the waiting period under federal antitrust laws. Both parties expect these conditions to be satisfied.
Shareholders who own approximately 57% of Zing's outstanding shares have executed agreements with IR to tender their shares.