Internet of things: Vishay adds Taiwan opto maker Capella
In $205 million deal
Computer parts maker Vishay Intertechnology Inc., Malvern, says it has agreed to pay shareholders $205 million ($Taiwan 139 a share) to buy Taiwan-based optoelectronics maker Capella Microsystems Inc., deal scheduled to close in September.
"Capella makes optical sensors such as ambient light sensors and proximity sensors and we think will be a good addition to Vishay's portfolio," analyst J. Steven Smigie told clients of Raymond James Equity Research in a report this morning. Capella has a comfortable 30% operating profit margin; the sale is priced at 2.5X this year's sales, in hopes Capella will gain clients in Korea's electronics assembly industry; Vishay will likely keep Capella's bosses and staff.
Smigie adds that "Vishay's existing R&D efforts in the opto area" makes Capella "a good set of technology to add, as sensors are being adopted into multiple new end-markets at an increasing pace.
In a statement, Vishay executive chairman Marc Sandman and CEO Gerald Paul, PhD. said the deal "will considerably strengthen Vishay's position in the fast growing market for optical sensors," that it conforms with Vishay's "target specialty acquisitions" growth plan, and that as Vishay Capella the group will be able to sell more parts to Vishay customers.
The law firms of Pepper Hamilton LLP and Lee & Li advised Vishay. Jones Day and investment bank Oppenheimer & Co. advised Capella.