Nuvoton Technology Corporation has entered into a Stock and Asset Purchase Agreement with Panasonic Corporation under which Nuvoton will acquire the semiconductor business of Panasonic mainly operated by Panasonic Semiconductor Solutions., Ltd. (PSCS) in an all-cash transaction, no other terms have been revealed. The transaction has been approved by the Board of Directors of Nuvoton.
PSCS, located in Nagaokakyo City, Kyoto, is a leading global supplier of semiconductor devices and solutions with products that focus on "Sensing" technologies such as Image Sensors, Image / Digital Signal Processors, "Microcontroller" technologies such as MCU, IC Card, Battery Management, Power Management and "Component" technologies such as MOSFET, RF-GaN and Laser Diode.
The acquisition of the semiconductor business mainly operated by PSCS will generate greater value for customers and shareholders of both companies, and will:
- Increase Nuvoton's presence in the global semiconductor industry through greater scale and volume of semiconductor solutions;
- Position Nuvoton well to capture secular growth trends in the electrification and automation of automotive and industrial fields;
- Broaden Nuvoton's distribution channels and customer base to explore cross-selling opportunities; and
- Strengthen Nuvoton's technology platform via deeper R&D resources and a broader intellectual property portfolio.
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"The semiconductor business has shifted from the AV area to the automotive and industrial area over the last few years. The Company has positioned the "sensing" technologies such as image sensors, and the "LiB Application" technologies such as ICs for battery management and MOSFETs for LiB Battery circuit protection as the focus areas, and the Company has aimed to grow its business by consolidating resources in these areas," according to a statement issued by Panasonic.
The statement continued, "However, the competitive environment surrounding the semiconductor business has become extremely severe due to aggressive expansion of competitors, huge investments in the focused area, and industry reorganization through M&A. In such an environment, the Company has come to believe that the even stronger business operation and the continuous investment is critical in order to achieve a sustained growth and expansion of the semiconductor business.
"Accordingly, it has concluded that the best option would be to transfer the business to Nuvotron, which highly appreciated the Company's accumulated technical and product capabilities and therefore has a potential to lead stable growth by leveraging those capabilities," the statement from Panasonic concluded.
This transaction, which is expected to close by June 2020, is subject to certain closing conditions including obtaining required regulatory and certain other approvals and consents in the relevant jurisdictions.
