SAN JOSE, Calif. - Power Integrations (NASDAQ: NASDAQ:POWI), a prominent player in the high-voltage integrated circuits industry, announced today an agreement to acquire the assets of Odyssey Semiconductor Technologies (OTCQB: ODII), which specializes in developing vertical gallium-nitride (GaN) transistor technology. The acquisition, scheduled to be finalized in July 2024, is set to bolster Power Integrations' development of its proprietary PowiGaN technology.
The company's PowiGaN technology is a critical component in several of its product families, including InnoSwitch ICs, HiperPFS-5 power-factor-correction ICs, and the InnoMux-2 family of single-stage, multiple-output ICs. In 2023, Power Integrations introduced 900- and 1250-volt versions of PowiGaN technology and products, signifying a significant advancement in the field.
Dr. Radu Barsan, Vice President of Technology at Power Integrations, expressed the strategic importance of the acquisition, stating that it aligns with the company's ambitious roadmap. The roadmap focuses on achieving cost parity with silicon MOSFETs and expanding the voltage and power capabilities of PowiGaN.
The ultimate goal is to offer a cost-effective and high-performance alternative to silicon carbide (SiC) in high-power applications, leveraging the inherent material advantages of GaN.
The Odyssey team, led by co-founder and CEO Dr. Richard Brown, shares the enthusiasm for the acquisition, recognizing Power Integrations as an industry leader in high-voltage GaN technology. Dr. Brown noted the company's pioneering role in commercializing high-voltage GaN and its continuous push to advance the technology in terms of cost, voltage, and current.
Post-acquisition, all key Odyssey employees are expected to join the technology organization at Power Integrations, contributing their expertise in high-current vertical GaN technology to the company's ongoing development efforts.
This acquisition is a strategic move for Power Integrations, as it continues to innovate in the semiconductor space, providing essential components for the clean-power ecosystem. These components play a pivotal role in the generation of renewable energy and the efficient use of power across a wide range of applications.
The information in this article is based on a press release statement.
InvestingPro Insights
In light of Power Integrations' (NASDAQ: POWI) recent announcement to acquire Odyssey Semiconductor Technologies, investors and industry observers are closely monitoring the company's financial health and market performance. According to InvestingPro data, Power Integrations holds a market capitalization of 3.96 billion USD, with a high price-to-earnings (P/E) ratio of 71.1, reflecting a premium valuation as of the last twelve months ending Q4 2023.
Despite challenging market conditions, as evidenced by a revenue decline of 31.73% over the last twelve months as of Q4 2023, Power Integrations has demonstrated a strong commitment to shareholder returns.
In fact, one of the notable InvestingPro Tips highlights that the company has raised its dividend for 11 consecutive years and has maintained dividend payments for 17 consecutive years, underscoring its financial resilience and management's confidence in the company's cash flow stability. Moreover, the company's liquid assets exceed its short-term obligations, providing a buffer in a volatile market environment.
Investors seeking more in-depth analysis and additional InvestingPro Tips for Power Integrations can explore the comprehensive suite of tools and data on InvestingPro. There are 11 additional tips available that could provide further insights into the company's performance and valuation. For those interested in an InvestingPro subscription, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.