Vishay Intertechnology Inc. and International Rectifier Corp. (IR) announced they have reached an agreement for the sale of IR's Power Control Systems (PCS) business to Vishay. The PCS business includes IR's Non-Focus Products business and certain product revenue from its Focus Products business, including certain discrete planar MOSFETs, discrete diodes and rectifiers, discrete thyristors, and automotive modules and assemblies. The PCS business accounted for revenue of approximately $300 M, or 26 percent of revenues in IR's June-ending fiscal year 2006. The PCS business is expected to be sold for approximately $290 M in cash. The agreement is subject to customary closing conditions, including obtaining all necessary governmental approvals and clearances, and finalization of schedules and other related documentation. Signing of definitive agreements is expected to take place by Friday, November 10, 2006, and the transaction is expected to close in February 2007.
For Vishay, the acquisition extends its product offering in discrete semiconductors and modules, while enhancing its strong position as one of the industry's largest manufacturers of discrete semiconductors and passive components. Furthermore, this acquisition will provide Vishay with synergies in the area of modules by combining Vishay components with the product lines to be acquired from International Rectifier. This divestiture enables International Rectifier to concentrate more fully its resources and assets on its Focus Products business, which includes high performance analog, digital and mixed-signal ICs, and other advanced power management products.