Vishay Intertechnology and General Semiconductor today announced they have entered into a definitive merger agreement under which Vishay will acquire General Semiconductor in a tax-free, all-stock transaction currently valued at $538.9 million plus $229.4 million of assumed debt.
Shareholders of General Semiconductor will receive 0.563 shares of Vishay for each General Semiconductor share, valuing the transaction at $13.54 per General Semiconductor share based on Vishay’s closing price yesterday.
According to a statement from Vishay the transaction is expected to be immediately accretive to Vishay’s earnings and yield significant operational synergies and cost savings, expected to exceed $50 million annually.
The addition of complementary General Semiconductor products to Vishay’s existing product line will, according to Vishay, create the premier line of discrete electronic components and position the combined company to meet a broader range of customer needs.
The deal is also expected to enhance R&D efforts focused on leading-edge power management products.
The transaction is subject to regulatory and shareholder approvals and other customary closing conditions and is expected to close in the fourth quarter of 2001.