Advanced Energy Completes the Acquisition of Artesyn Embedded Power
已发布 九月 10, 2019
FORT COLLINS, Colo.--(BUSINESS WIRE)--Sep. 10, 2019-- Advanced Energy Industries, Inc. (Nasdaq: AEIS), a global leader in highly engineered, precision power conversion, measurement and control solutions, today announced that it has completed the previously announced acquisition of Artesyn Embedded Technologies’ Embedded Power business. With this highly strategic acquisition, Advanced Energy becomes a highly diversified, pure play power house with a global platform for accelerated earnings growth.
“Today marks a new chapter for Advanced Energy as we embark on the next phase of our diversification and growth strategy by adding broad sets of markets and industry-leading technologies. With integration efforts already started, the new AE management team, with the addition of Dana Huth who leads the Artesyn Embedded Power business, is well prepared to deliver long-term, profitable and sustainable growth,” said Yuval Wasserman, president and CEO of Advanced Energy.
Strategic benefits of this acquisition include:
- Creates a premier global power conversion company with enabling critical power technologies and over $1.3 billion in annual revenue, based on 2018 combined historical results.
- Triples AE’s addressable market to $7.5 billion by adding new attractive growth verticals in hyperscale data center, 5G wireless, industrial and medical technologies.
- Solid strategic fit with highly complementary technologies, product portfolios and core competencies in highly engineered, application-specific power solutions for key OEMs in demanding applications.
- Accelerates earnings growth, driving projected annualized accretion of over $0.80 per share in 18-24 months and targeting to reach long-term accretion of over $1.50 per share, on a non-GAAP basis.
- Creates significant financial value with a purchase price of approximately 5x synergy-adjusted EBITDA, with a path to future margin expansion, additional cost savings and de-levering to create long-term shareholder value.
“We are encouraged by the positive reaction to this acquisition by both the market and our customers. The added capabilities and expertise of the Artesyn team will allow AE to better meet our customers’ needs,” added Wasserman.
“On behalf of the entire Artesyn Embedded Power team, we are excited to be playing a key role in this new chapter for Advanced Energy,” said Dana Huth. “I look forward to leading the Artesyn Embedded Power organization as together with Advanced Energy, we create a premier power conversion company developing power solutions that our customers depend on for mission-critical applications.”
Under the terms of the share purchase agreement, the total consideration for this acquisition was approximately $400 million. Advanced Energy paid approximately $375 million in cash at closing and assumed approximately $25 million in net liabilities, including estimated adjustments for net working capital and acquired cash.
In conjunction with this transaction, AE completed the previously-announced credit financing, consisting of $350.0 million of a senior unsecured term loan A facility and an untapped $150.0 million senior unsecured revolving facility, before any fees, led by Bank of America, N.A., with commitments from HSBC Bank USA, N.A., Bank of the West and Citibank, N.A.
The acquisition of Artesyn Embedded Power is expected to be immediately accretive to earnings on a non-GAAP basis and generate over $20 million of annualized synergies within 18-24 months and $40 million of total synergies long-term. In 2018, revenues for Artesyn Embedded Power were approximately $593 million and adjusted EBITDA was approximately $55 million. AE’s guidance for the third quarter of 2019 provided on August 5, 2019, did not reflect any revenue or profit contribution from this transaction. Management intends to provide more detail on the forward-looking benefits of this acquisition when it announces financial results for the third quarter.
关于先进能源Advanced Energy Industries, Inc.（纳斯达克股票代码：AEIS）是为关键任务应用和流程设计和制造高度工程化、精密电源转换、测量和控制解决方案的全球领先企业。Advanced Energy 的电源解决方案使客户能够在半导体设备、工业生产、医疗和生命科学、数据中心计算、网络和电信等众多行业的复杂应用中实现创新。凭借工程专有技术以及为全球客户提供的快速响应服务和支持，公司建立了合作伙伴关系，以满足技术进步的需求，推动客户的增长，并创新未来的电源。先进能源公司四十年来一直致力于完善电力系统。公司总部位于美国科罗拉多州丹佛市。
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