EL SEGUNDO, Calif., Aug. 15, 2022 (Globe Newswire) — Navitas Semiconductor (Nasdaq: NVTS), an industry leader in gallium nitride (GaN) power ICs, today announced the acquisition of GeneSiC Semiconductor, a silicon carbide (SiC) announced. ) A pioneer with deep expertise in SiC power device design and processing. This deal is instantly accretive for Navitas as GeneSiC is very profitable with his EBITDA margin of over 25%. Calendar 2022 earnings are expected to be around $25 million, giving him an annual growth rate of over 60%. The combined company will create a comprehensive, industry-leading technology portfolio in next-generation power semiconductors (both GaN and SiC), with an aggregate market opportunity of more than $20 billion annually by 2026.
“GeneSiC is an ideal partner for Navitas, which is focused and successful on developing industry-leading SiC technology,” said Gene Sheridan, CEO and co-founder of Navitas. “Navitas has made significant investments in our EV and data center system design centers, as well as our global sales, operations and technical support teams. Today, in our mission to Electrify Our World™, we are moving the planet from fossil fuels to clean, efficient electrical energy. We have taken a major step forward in moving forward.”
“GeneSiC's patent-protected advanced technology and innovative and experienced team are key factors to our growth. Our SiC MOSFETs offer the industry's best performance, reliability and robustness. This is an essential parameter for the widespread adoption of electric vehicles and associated infrastructure,” said Dr. Ranbir Singh, President of GeneSiC. “With nearly 20 years of cutting-edge research and development, a proven platform, more than 500 diverse customers, and growing revenue and profitability, we are leveraging Navitas' high-volume manufacturing expertise and go-to-market strategy to drive SiC revenue forward. We are very excited about this new partnership.”
Dr. Singh will join Navitas as executive vice president of the GeneSiC business, and Navitas plans to retain all members of the GeneSiC team.
In power semiconductors, both GaN and SiC are superior materials to traditional silicon, enabling higher speeds, significant energy savings, faster charging, and significant reductions in size, weight, and cost. Together, these complementary next-generation materials can support a wide range of applications from 20W smartphone chargers to 20kW EV chargers, 20MW grid infrastructure systems, and everything in between. With over 500 customers, the acquisition of GeneSiC will provide a diversified and synergistic market and customers to accelerate Navitas' revenue in strategic, high-power applications.
- Electric car: Navitas GaN IC is optimized for 400V EV systems, GeneSiC technology is ideal for 800V EV systems, and existing revenue and development customers include BYD, the world's #1 EV supplier, Land Rover, Mercedes-AMG, and Geely. , Thinley, LG Magna, Saab, Inovance, and dozens of others.
- Solar power and energy storage: Navitas GaN ICs serve residential solar, while GeneSiC serves high-power, commercial solar, and energy storage customers including APS, Advanced Energy, Chint, Sungrow, Growatt, CATL, Exide, and more. generates immediate revenue.
- Broader industrial market: GeneSiC high-voltage products deliver immediate revenue in a wide range of industrial markets, including rail, UPS, wind, power grid, industrial motors, and medical imaging.
Transaction details
The GeneSiC acquisition is expected to be immediately accretive to Navitas' earnings per share. The total consideration is approximately $100 million in cash, 24.9 million Navitas shares, and a potential purchase price of up to $25 million, subject to the achievement of significant revenue targets for the GeneSiC business over four fiscal quarters ending September 30, 2023. Consists of certain earn-out payments. For more information about GeneSiC, please visit ir.navitassemi.com.
advisor
Jefferies LLC served as financial advisor to Navitas and Bank of America served as financial advisor to GeneSiC. TCF Law Group, PLLC served as legal advisor to Navitas and Gibson, Dunn & Crutcher LLP served as legal advisor to GeneSiC.
Conference call and webcast information
The GeneSiC acquisition will be discussed as part of Navitas' second quarter 2022 earnings call.
when: Monday, August 15thth2022
time: 2pm Pacific / 5pm Eastern
Toll-free in: (800) 715-9871 or (646) 307-1963
Conference ID: 6867001
Live webcast: https://edge.media-server.com/mmc/p/tqt3b9y7
Replay: A replay of the conference call can be accessed from the Investor Relations section of our website. https://ir.navitassemi.com/.
Cautionary note regarding forward-looking statements
This press release contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include words such as “anticipates” or “is expected to”, “estimates”, “plans”, “plans”, “anticipates”, “intends”, “anticipates” and similar words. May be identified by use. “believe”, “seek” or other similar expressions that predict or suggest future events or trends or that are not statements of historical matter. These forward-looking statements include, without limitation, statements regarding estimates and projections of other financial and performance measures, and projections of market opportunity and market share. These statements are based on various assumptions, whether or not identified in this press release. These statements are also based on Navitas management's current expectations and are not predictive of actual performance. Such forward-looking statements are provided for illustrative purposes only and are not intended to serve as guarantees, guarantees, predictions, or conclusive statements of fact or probabilities, and investors should not rely on them. should not be relied upon as such. Actual events and circumstances are difficult or impossible to predict and may differ from assumptions and expectations. Many of the actual events and circumstances that affect performance are beyond the control of Navitas. Forward-looking statements are subject to a number of risks and uncertainties, including the possibility that the anticipated growth of Navitas and Genesic's business will not be realized or within the expected time period. GeneSiC was not successfully integrated into his Navitas business and operational systems. the impact of acquisitions on customer and supplier relationships or the failure to maintain and expand those relationships; the success or failure of other business development efforts; Navitas' financial condition and results of operations; Navitas' ability to accurately predict future revenues for the purpose of appropriately budgeting and adjusting Navitas' expenses; Navitas' ability to diversify its customer base and develop relationships in new markets; the ability to expand Navitas' technology into new markets and applications; the effect of competition on Navitas' business; This includes the actions of competitors with an established presence and resources in the markets we wish to enter, such as the silicon carbide market. the level of demand in the end markets of Navitas' and GeneSiC's customers (generally and with respect to successive generations of products and technologies); Navitas' ability to attract, train and retain key qualified personnel; changes in government trade policies, including the imposition of tariffs; the impact of the COVID-19 pandemic on Navitas' business, results of operations and financial condition; the impact of the COVID-19 pandemic on the global economy, including without limitation Navitas' supply chain and the supply chains of our customers and suppliers; Regulatory developments in the United States and abroad. Navitas' ability to protect its intellectual property rights; For information on these and other risk factors, see Risk factors section It starts from p.11 of us Annual Report on Form 10-K Other filings by the Company with the SEC, including the Company's Quarterly Report for the year ended December 31, 2021, as filed with the Securities and Exchange Commission (the “SEC”) on March 31, 2022, and as amended thereafter. Document 10-Q. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from those suggested by these forward-looking statements. There is a gender. There may be additional risks that Navitas is not aware of or that Navitas currently believes to be immaterial, which could cause actual results to differ materially from those contained in the forward-looking statements. there is. Additionally, forward-looking statements reflect his Navitas' expectations, plans and projections regarding future events and beliefs as of the date of this press release. Navitas expects that subsequent events and developments will cause its ratings to change. However, while Navitas may elect to update these forward-looking statements at some point in the future, Navitas specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Navitas' evaluation as of any date subsequent to the date of this press release.
About Navitas
navitas semiconductor (Nasdaq: NVTS) is an industry leader in gallium nitride (GaN) power ICGaNFast™ power ICs integrate GaN power with drive, control, sensing, and protection to deliver faster charging, higher power density, and more power in mobile, consumer, data center, EV, and solar markets. Enables energy savings. Navitas has more than 165 patents issued or pending. With over 50 million units shipped and zero reported GaN field failures, Navitas introduced the industry's first and only 20-year warranty. Navitas is the world's first semiconductor company. carbon neutral®-Authenticated.
About GeneSiC Semiconductor, Inc.
Genesic Semiconductor is a pioneer and world leader in silicon carbide (SiC) technology. Leading global manufacturers rely on GeneSiC's technology to improve the performance and efficiency of their products. GeneSiC's electronic components run cooler, faster, and more economically, playing a key role in saving energy in a variety of high-power systems. GeneSiC holds key patents on wide bandgap power device technology, a market expected to reach more than $5 billion by 2025. Our core design, process and technology strengths add more value to our customers' end products through performance and performance. A new standard cost index for the silicon carbide industry.
contact address
media
Graham Robertson, CMO, Grand Bridges
Graham@GrandBridges.com
Investor
Stephen Oliver, Vice President of Corporate Marketing and Investor Relations
ir@navitassemi.com
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