ADVANCED ENERGY INDUSTRIES INC acquires Artesyn Embedded Power (Embedded Power business of Artesyn Embedded Technologies)
Snapshot
ADVANCED ENERGY INDUSTRIES INC acquired Artesyn Embedded Power (Embedded Power business of Artesyn Embedded Technologies) for approximately $400 million base purchase price (~$364M cash + ~$36M assumed liabilities); $370.2M final purchase price net of cash acquired in September 2019. The transaction was structured as all cash, debt-financed (~$350M of debt). Artesyn Embedded Power (Embedded Power business of Artesyn Embedded Technologies) is a Global; targets hyperscale data center, 5G telecom infrastructure, embedded industrial and medical power markets-based Embedded power / AC-DC and DC-DC power supplies business.
- Acquirer
- ADVANCED ENERGY INDUSTRIES INC
- Target
- Artesyn Embedded Power (Embedded Power business of Artesyn Embedded Technologies)
- Value
- approximately $400 million base purchase price (~$364M cash + ~$36M assumed liabilities); $370.2M final purchase price net of cash acquired
- Date
- September 2019
- Type
- full acquisition (carve-out from Platinum Equity)
- Status
- ready
The deal at a glance
About this deal
ADVANCED ENERGY INDUSTRIES INC acquired Artesyn Embedded Power (Embedded Power business of Artesyn Embedded Technologies) for approximately $400 million base purchase price (~$364M cash + ~$36M assumed liabilities); $370.2M final purchase price net of cash acquired, a transaction completed in September 2019, structured as all cash, debt-financed (~$350M of debt).
Artesyn Embedded Power (Embedded Power business of Artesyn Embedded Technologies) operates in Embedded power / AC-DC and DC-DC power supplies, is based in Global; targets hyperscale data center, 5G telecom infrastructure, embedded industrial and medical power markets, had revenue of about Combined company over $1.3 billion in annual revenue based on 2018 combined historical results. The Embedded Power business of Artesyn Embedded Technologies (the Artesyn and Astec brands), one of the world's largest providers of highly engineered, application-specific AC-DC and DC-DC power supplies for demanding applications, acquired from Platinum Equity. Artesyn's Embedded Computing and Consumer Products businesses were excluded from the transaction.
Creates a $1.3 billion premier global power conversion company; triples AE's addressable market to $7.5 billion by adding hyperscale data center, 5G wireless, industrial and medical growth verticals; targets over $20 million annualized synergies in 18-24 months and over $40 million long-term; expected to be immediately accretive to non-GAAP EPS.
Complementary technologies and core competencies in highly-engineered, application-specific power; access to new stable growth verticals; purchase price of approximately 5x synergy-adjusted EBITDA. Over $20 million expected annualized synergies in 18-24 months (driving over $0.80/share accretion) and over $40 million long-term (targeting over $1.50/share accretion), on a non-GAAP basis. Integrated as Advanced Energy's embedded power platform alongside the Artesyn and Astec brands
No advisory firms have been disclosed for this transaction.