German chip-maker Infineon Technologies will buy U.S.-based International Rectifier for about USD 3 billion in cash, the companies announced today. The acquisition combines two semiconductor companies with leadership positions in power management technology. By the integration of International Rectifier, Infineon complements its offerings and will be able to provide its customers with a broader range of products and services. Infineon will also benefit significantly from greater economies of scale as well as a larger regional footprint.

With International Rectifier, Infineon acquires a manufacturer in Gallium Nitride on Silicon (GaN) based power semiconductors. This combination will strengthen Infineon’s position in GaN discretes and GaN system solutions, improving its ability to pursue this strategically important technology platform with significant future growth potential.

Dr. Reinhard Ploss, CEO of Infineon Technologies AG, says: "The acquisition of International Rectifier is a unique opportunity. With their great knowledge of specific customer needs and their application understanding, International Rectifier employees will contribute to Infineon’s strategic development from product thinking to system understanding and system solutions. The combination of Infineon’s and International Rectifier’s products, technological and innovative excellence, as well as distributional strength will unleash great potential."

Oleg Khaykin, President and CEO of International Rectifier, says: "This transaction provides significant value to our stockholders and opens new strategic opportunities for both our customers and employees. By combining two complementary providers in power management solutions, International Rectifier will benefit from Infineon’s products and technologies, manufacturing and operational excellence and greater R&D scale."

The companies expect to close the transaction late in the calendar year 2014 or early in the calendar year 2015 subject to regulatory approval.