IFNNY - Infineon buys GaN Systems for $830M cash as it aims lead in power conversion
Infineon Technologies ( OTCQX:IFNNY ) said Thursday it bought GaN Systems for US$830 million in an all cash deal.
Ottawa, Canada-based GaN is a provider of Gallium nitride-based products and solutions for power conversion and has more than 200 employees.
Gallium nitride is widely used instead of silicon in manufacturing of semiconductors and chips, while being cost efficient and improving performance.
The deal will be funded from Infineon's existing liquidity, the company said.
"The planned acquisition of GaN Systems will significantly accelerate our GaN roadmap, based on unmatched R&D resources, application understanding and customer project pipeline. Following our strategy, the combination will further strengthen Infineon's leadership in Power Systems through mastery of all relevant power technologies, be it on silicon, silicon carbide or gallium nitride," Infineon CEO Jochen Hanebeck said.
The transaction is subject to customary closing conditions, including regulatory approvals.
Seeking Alpha contributor Daan Rijnberk recently laid out a "Strong Buy" case for IFNNY .
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Infineon buys GaN Systems for $830M cash as it aims lead in power conversion