Infineon Technologies AG recently finalized its acquisition of American company International Rectifier Corporation. With all necessary regulatory approvals and shareholder consents secured, International Rectifier, based in El Segundo, is now officially part of Infineon. This strategic move marks a significant milestone for the semiconductor giant as it strengthens its global leadership in power semiconductors.
Dr. Reinhard Ploss, CEO of Infineon, emphasized the importance of this acquisition: “Acquiring International Rectifier is a key step for Infineon. It reinforces our position in the global power semiconductor market and brings together two strong teams to create mutual value. This merger will enhance our product portfolio and deepen our understanding of customer needs, allowing us to deliver more competitive and tailored solutions. It also accelerates our shift from ‘product thinking’ to ‘system insight.’â€
The newly integrated company will be led by Dr. Reinhard Ploss, along with Arunjai Mittal, who serves on the Regional Sales, Marketing, Strategic Planning, and M&A Management Committee, and CFO Dominik Asam. Robert LeFort will continue as President of International Rectifier and Infineon North America.
International Rectifier complements Infineon’s existing offerings, expanding its product range and broadening its market presence. The acquisition brings valuable expertise in power management systems, advanced knowledge in compound semiconductors like gallium nitride, and enhances Infineon’s production scale and competitive edge.
Financially, the deal is expected to boost Infineon’s earnings per share (EPS) for the current fiscal year. With the successful operational restructuring of International Rectifier, the synergy between the two companies is anticipated to drive greater value in the future.
By the end of FY17, International Rectifier’s contribution to the post-merger company is expected to reach Infineon’s target profit margin of 15%, aligning with industry standards during peak cycles.
This acquisition was announced on August 20, 2014, when Infineon agreed to acquire International Rectifier for approximately $3 billion. The deal was unanimously approved by both companies' boards, and over 99.5% of International Rectifier shareholders voted in favor. Regulatory approvals were also secured, paving the way for a smooth integration.
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