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Advanced Energy to Acquire Artesyn Embedded Power for USD 400m
Wednesday 22 May 2019

22 May 2019 - Colorado, US-based Advanced Energy Industries, Inc. (NASDAQ: AEIS), provider of power conversion, measurement and control solutions, has agreed to acquire the Embedded Power business of Artesyn Embedded Technologies, Inc. (Artesyn EP) from Platinum Equity for a total consideration of approximately USD 400m, the company said.
Under the terms of the Share Purchase Agreement, based on a total base purchase price of USD 400m, Advanced Energy will pay approximately USD 364m in cash and assume approximately USD 36m of liabilities for Artesyn EP. 
AE expects to finance the transaction through a combination of existing cash and USD 350m of debt supported by commitments from its lenders.
The acquisition creates a premier global power conversion company with enabling critical power technologies and over USD 1.3bn in annual revenue, broadening and diversifying Advanced Energy into multiple, stable growth verticals and customers.
The transaction only involves Artesyn's Embedded Power business, which includes the Artesyn and Astec brands. Artesyn's Embedded Computing and Consumer Products businesses are not included in this transaction. 
Advanced Energy is a leader in the design and manufacturing of highly engineered, precision power conversion, measurement and control solutions for mission-critical applications and processes. AE's power solutions enable customer innovation in complex semiconductor and industrial manufacturing applications.
Artesyn's Embedded Power business is one of the world's largest and most successful power supply companies.
The company's extensive standard AC-DC product portfolio covers a power range of 3 watts to 24kw and includes a range of configurations and customisable solutions.
Artesyn produces a range of DC-DC power conversion products. Headquartered in Tempe, Arizona, Artesyn's Embedded Power business has approximately 9,500 employees across multiple engineering design centres, manufacturing facilities, and global sales and support offices worldwide. 
Advanced Energy is advised in the transaction by Evercore as exclusive financial advisor and Foley and Lardner LLP as legal counsel. JP Morgan is serving as primary financial advisor to Artesyn. Morgan Stanley is also providing financial advisory services to Artesyn on the transaction.
Morgan, Lewis and Bockius LLP and Baker and McKenzie LLP are serving as legal counsel to Artesyn. The transaction will be supported by committed financing led by Bank of America, HSBC USA, Bank of the West BNP Paribas and Citibank.
Details
Date Published: 22/05/2019
Target: Artesyn,  Embedded Technologies, Inc
Country: USA
Deal Size: 400m (USD)
Sector: Computer Hardware
Type: LBO
Financing: Cash
Status: Agreed
Vendor: Platinum Equity
Buyer: Advanced Energy Industries
Buyer Advisor: Evercore,   , Foley and Lardner
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