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Diodes (DIOD) To Buy BCD Semiconductor (BCDS) For $151M

 December 26, 2012 04:20 PM

(By Balaseshan) Diodes Inc. (NASDAQ: DIOD), a manufacturer of application-specific standard products, said it has agreed to buy BCD Semiconductor Manufacturing Ltd. (NASDAQ: BCDS) for about $151 million in cash.

At the effective date of the merger, each American Depository Share, which represents six ordinary shares of BCD, will be converted into the right to receive $8.00 in cash, without interest.

The transaction is expected to be immediately accretive to Diodes' GAAP earnings per share. The acquisition strengthens Diodes' analog product portfolio by expanding its standard linear and power management offerings, as well as it broadens Diodes' presence in Asia through BCD's strong local market position in China.

[Related -Diodes (DIOD) Lifts Q1 Forecast After BCD Semiconductor Purchase]

The purchase is expected to result in revenue, operating and cost synergies. The deal enhances market and margin expansion opportunities by leveraging Diodes' cost-effective manufacturing and packaging capabilities, and expands design and manufacturing capabilities for increased capacity and scale.

The boards of both companies have approved the transaction. The transaction is expected to close late in the first quarter of 2013 or early in the second quarter.

Atlas Technology Group LLC and Duff & Phelps LLC acted as financial advisors and Sheppard Mullin Richter & Hampton LLP acted as legal counsel to Diodes Incorporated. RBC Capital Markets LLC acted as exclusive financial advisor and Covington & Burling LLP acted as legal counsel to BCD Semiconductor.

[Related -Analysts' Rating And Target Changes: BCDS, CMI, DAL, OMER]

DIOD closed Wednesday's regular session up 0.60% at $16.90, while BCDS ended up 2.06% at $3.96.

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