Diodes Incorporated announced that the company has completed the acquisition of Lite-On Semiconductor ("LSC").
The acquisition was initially announced August 8, 2019, with LSC shareholders approving the transaction on October 25, 2019. Following receipt of all necessary regulatory approvals and finalizing all other conditions, the transaction closed and became effective today with each LSC shareholder receiving TWD 42.50, or total cash paid of approximately $446 million. As a result of the transaction’s close, the common stock of LSC will no longer be listed for trading on the Taiwan Stock Exchange.
Commenting on the transaction, Chairman, President and CEO Dr. Keh-Shew Lu, said, “We are very pleased to complete the acquisition of LSC, which will be immediately accretive to Diodes’ earnings per share and represents the next significant step in executing our strategic growth plan. This acquisition broadens our discrete product offerings, including providing us with a leadership position in glass-passivated bridges and rectifiers that will allow us to further extend our position in the Automotive and Industrial market spaces consistent with Diodes’ overall growth strategy. Further, the acquisition expands our wafer fabrication and assembly and test capacity and provides us an opportunity to improve LSC’s profitability through operating and manufacturing improvements as well as increased factory utilization.
“In addition to the product and operating synergies, this acquisition enabled us to accelerate our share repurchase activities, recapturing approximately 14.7% of Diodes outstanding shares previously held by LSC. I would like to personally welcome the LSC employees to the Diodes’ family, and together, I believe we are well positioned to achieve our goal of annual gross profit of $1 billion by 2025. We look forward to reporting our continued progress and future successes as one combined company.”
Diodes original fourth quarter guidance as provided on November 9, 2020 did not include any benefit from the LSC acquisition. As of that date, Diodes expected revenue to be $324 million, plus or minus 3%. With the acquisition now closed, Diodes expects LSC will contribute approximately $17 million in additional revenue and $0.01 to earnings per share. For the full year 2021, Diodes expects LSC to add approximately $0.30 to earnings per share.
