To most people familiar with the electronics industry, the name Littelfuse immediately brings to mind a long-time supplier of fuses for automotive and electronic circuit protection applications. But the company’s product line has expanded greatly over the years through acquisition and organic growth. Through these moves, Littelfuse has added transient voltage suppression diodes, protection thyristors, relays, sensors, current and voltage monitors, and other products.
Now add power semiconductors to that mix.
On Monday, the Chicago-based component supplier acquired IXYS Corporation, a Milpitas, CA-based supplier of power semiconductors and integrated circuits with a focus on medium to high voltage power control semiconductors. The cash and stock transaction represents an equity value of about $750 million and an enterprise value of $655 million.
In fiscal 2016, Littelfuse generated $1.06 billion in revenue. By adding IXYS to its portfolio, Littelfuse’s annual revenue is expected to reach $1.5 billion. Some synergies are already there: IXYS already has a presence in the industrial and transportation markets, and the merger will enable Littelfuse to bolster its offerings in automotive power control semiconductors. This will become particular crucial as electronics content in vehicle continues to grow.
IXYS’ power semiconductor line includes MOSFETs, IGBTs, and BiMOSFETS. The MOSFETs are used for large power conversion systems and applications from 60 to 4,000 V. The IGBTs are used in AC motor drives, power systems, and defibrillators, while the bipolar transistors include rectifiers, thyristors, and gate-turnoff thyristors (GTOs).
I have covered IXYS over the years and under the leadership of long-time chairman and CEO, Dr. Nathan Zommer, the company has long been a pioneer in developing high-performance power semiconductors. Moreover, the company has itself broadened its product line over the years through a number of strategic acquisitions. Its Clare Inc., subsidiary designs optically isolated solid state relays, mixed-signal custom ICs, and ASSP ICs for telecom. Another subsidiary, Zilog Inc., offers embedded microcontroller units for system-on-chip solutions enabling digital power management and embedded control.
In addition, IXYS plays in the RF market through its Microwave Technology Inc., and IXYS Colorado subsidiaries. Products include RF and microwave discrete semiconductors; GaA Schottky diodes; wireless, microwave, and MMIC amplifiers; and hybrid modules.
For Littelfuse, the merger with IXYS thrusts the company into being even more of a “one-stop” supplier for its expanding customer base. The company acquired U.S. Sensor Corporation, an Orange, CA-based supplier of temperature sensors in July, and shows no signs of slowing down in its quest to be a full line company offering a wide range of components and semiconductors.
Any thoughts? Contact me at Spencer.Chin@advantagemedia.com.
