Power management solutions provider AcBel Polytech Inc (康舒科技) has fully acquired ABB Ltd’s power conversion division in a cash deal worth US$505 million, it said on Monday.
AcBel said the transaction would create a more resilient and higher margin product portfolio, given the power conversion division’s exposure to the telecom, data center and industrial segments.
The division counts AT&T Inc, Verizon Communications Inc, T-Mobile US Inc, Alphabet Inc’s Google and Hewlett Packard Enterprise Co among its customers, it said.
Photo: Fang Wei-chieh, Taipei Times
All the prerequisites for the acquisition have been fully met including approval from the Committee on Foreign Investment in the United States, AcBel said.
“As the world ushers in the 5G era, industries are accelerating their development to offer innovative applications, giving a boost to the power industry,” AcBel chairman Jerry Hsu (許介立) said in a statement.
“The deep combination with the advanced technology and system solutions from the power conversion unit, AcBel will be able to provide customers with optimal product portfolios amid the growing trend of power efficiency demand from consumers and enterprises,” Hsu said.
AcBel expects strong growth of its power supplies used in electric vehicles this year, a new business that made a small revenue contribution last year.
AcBel’s revenue rose 15.59 percent year-on-year to NT$25.32 billion (US$813.73 million) last year, with 90 percent coming from sales of power supplies. Net profit increased 5.7 percent to NT$636.36 million, or earnings per share of NT$1.23.
The company said that power supplies used in consumer electronics such as desktop and notebook computers accounted for 49 percent of its sales last year, while those for servers, data centers and storage devices contributed 41 percent.
AcBel shares rose 4.09 percent to close at NT$50.9 in Taipei trading yesterday, the highest since June 5, when shares closed at NT$51.2, Taiwan Stock Exchange data showed.
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