Acquisitions · Semiconductors
Renesas agrees to buy California GaN power-chip maker Transphorm for $339 million
- Buyer
- Renesas Electronics (Tokyo)
- Target
- Transphorm, Goleta, California
- Value
- $339M
- Status
- Completed in June 2024.
- Date
- 2024-01-11
Renesas agreed to acquire Nasdaq-listed Transphorm for $5.10 per share in cash, about a 35% premium to the prior close, valuing the deal at roughly $339 million. Transphorm develops gallium nitride (GaN) power semiconductors. Renesas plans to pair the technology with its silicon and silicon-carbide power products for EVs, data centers, renewables and chargers.
Why it matters
GaN is a fast-growing next-generation power-chip material, and buying a US specialist gives Renesas in-house technology rather than relying on partners. It continued Renesas's string of US acquisitions to build out its power and analog portfolio.
The terms
The $5.10 a share was about 35% above Transphorm's January 10, 2024 close, 56% above its 12-month average price and 78% above its six-month average. KKR Phorm Investors, which held about 38.6% of the shares, agreed to vote for the deal.
About Transphorm
Transphorm was founded in 2007 in Goleta, California, with roots at the University of California, Santa Barbara. It was led by co-founders Primit Parikh and Umesh Mishra. It owned or licensed more than 1,000 GaN patents, had operations in Goleta and Aizu, Japan, and made the first high-voltage GaN chips qualified for car use.
After closing
The deal closed on June 20, 2024, and Renesas released 15 new reference designs using the chips the same day. It is part of a wider push into power chips that includes a 300mm power-chip fab in Kofu, a silicon carbide line in Takasaki and a 10-year silicon carbide wafer supply deal with Wolfspeed.
Sources
Kakehashi M&A News home
