EL SEGUNDO, Calif — International Rectifier Corporation (IR) (NYSE: IRF) announced today that it has signed a definitive agreement to acquire privately held CHiL Semiconductor Corporation (CHiL) for $75 million in cash, subject to working capital adjustments. The acquisition expands IR’s technology by adding a leading digital power management platform that improves energy efficiency in a wide variety of applications, including computing systems, graphics, servers and gaming.
CHiL uses patented digital techniques in combination with mixed signal technology to deliver high performance multi-phase power solutions that saves energy. The open architecture approach to digital control, where customers can tailor power systems for cost and performance goals, enables significant board space and bill-of-materials reduction, integrating many analog features into the digital core of the technology.
“The addition of CHiL’s technology and expertise to our broad portfolio of industry leading products such as DirectFET™, PowIRstage™ and SupIRBuck™, offers IR’s customers a unique value proposition by providing a high performance, cost effective, complete end-to-end integrated solution,” stated Tim Phillips, Vice President and General Manager, Enterprise Power Business Unit of IR. “Digital power management is entering a rapid adoption phase and the addition of CHiL’s technology strengthens IR’s market position to capitalize on this growth opportunity.
“The acquisition is the next logical step after our successful strategic product relationship with CHiL during the past year and will augment IR’s talent base by adding an experienced digital power design and applications engineering team,” concluded Mr. Phillips.
“The increased focus on energy efficient products over the next decade is expected to drive an expanding use of digital power management in applications such as DC-DC converters, AC-DC converters, lighting, inverters and Class-D audio systems,” stated Vishwas Karve, Vice President, Strategy and Business Development of IR. “The acquisition of CHiL expands IR’s presence immediately in the high performance computing and graphics segments, over the medium-term in the server, storage and notebook end markets and longer-term across the Company’s other vertical end market segments including Energy-Savings Products, Automotive Products and HiRel business units.”
“IR’s focus on power management solutions and energy efficiency make it an ideal partner for our customers and employees,” stated Ram Sudireddy, Chief Executive Officer of CHiL Semiconductor. “As digital power management continues to expand, the combined technology of IR and CHiL can create a higher performance and lower cost solution enabling end users to create more energy efficient solutions. To date, CHiL has secured a significant number of design-wins across a wide spectrum of graphics, high performance computing and server platforms that IR can help grow.”
The transaction is expected to close in the first calendar quarter of 2011. The acquisition, which initially adds approximately $3 million of additional operating expenses per quarter, is expected to be accretive to IR’s earnings per share in the company’s 2012 fiscal year.