Infineon Technologies announced today that it plans to acquire SensoNor ASA, headquartered in Horten, Norway, with the aim of strengthening its position in semiconductor sensors for the automotive industry.
Stockholders are due to receive a takeover bid after today’s extraordinary general meeting of shareholders of SensoNor, a provider of tyre pressure and acceleration sensors. Infineon expects to pay around 48 million Euros to complete the acquisition.
As part of the terms of the offer, Infineon plans to purchase 138.5 million shares from institutional and private investors for NOK 2 per share. This equates to an investment of around Euro 35 million. SensoNor will also issue 100 million new shares to Infineon for a cash contribution of NOK 1 per share.
The planned friendly takeover of SensoNor would reportedly make Infineon the market leader in tyre pressure sensors. SensoNor’s tyre pressure sensors have already been fully qualified by leading car manufacturers with whom long-term supply agreements have been concluded.
The market for semiconductor sensors in automotive applications is expected to increase by up to 20 percent per year. Sensors that check tyre pressure are the biggest growth area for pressure sensors.
Regulations in this field mean car manufacturers will be fitting around 10 percent of new vehicles registered in the USA with tyre pressure monitoring systems by the end of 2003. This will increase to around 35 per cent by 2004 and will reach 65 percent by 2005.