MinebeaMitsumi, the international electrical components corporation, is set to acquire Hitachi (OTC:HTHIY) Power Semiconductor Device (HPSD), a subsidiary of Hitachi Ltd , with completion scheduled for March 2024. The acquisition forms part of MinebeaMitsumi's strategic market expansion plan, the financial details of which remain undisclosed.
HPSD, established in 2013 through a merger with Hitachi Haramachi Electronics Co, specializes in high-voltage, low-loss power semiconductor technologies. Their product range includes IGBT/SiC products for decarbonization market sectors like electric vehicles (EVs), wind power generators, and railroads. They also produce high-voltage integrated circuits (ICs) that improve system efficiency and noise reduction in industrial and home appliances through motor control technology. Additionally, HPSD manufactures high-reliability diodes used in automotive applications.
The decision to transfer all shares of HPSD to MinebeaMitsumi followed discussions on value enhancement strategies with parent company Hitachi Ltd. It was concluded that HPSD's growth would be best continued under MinebeaMitsumi due to its focus on analog semiconductors. The goals of this acquisition include enhancing strengths, expanding production capacity, and improving manufacturing efficiency.
This acquisition will integrate HPSD's specialized knowledge into MinebeaMitsumi's operations, thereby enhancing its product portfolio. Power semiconductors play a crucial role in optimizing energy efficiency and system reliability in industries such as automotive and renewable energy. This move underlines MinebeaMitsumi's continuous efforts to provide innovative solutions that drive industry propulsion by offering comprehensive customer solutions through an enhanced product portfolio.
InvestingPro Insights
InvestingPro's real-time data and tips provide valuable insights into both companies involved in this acquisition. MinebeaMitsumi, identified by InvestingPro as 6501, has been profitable over the last twelve months, and has shown a strong return over the last five years. This reflects a strong financial footing which is crucial for the successful integration of HPSD into its operations. Furthermore, with a dividend that has been raised for five consecutive years, MinebeaMitsumi demonstrates financial stability that might reassure investors in light of this acquisition.
On the other hand, HPSD's parent company, Hitachi Ltd, identified as 6479, has consistently increased its earnings per share and has maintained dividend payments for 30 consecutive years, indicating a solid financial performance. Despite a high P/E ratio relative to near-term earnings growth, the company has shown a significant return over the last week, which might reflect market optimism about the announced acquisition.
InvestingPro's data also highlights MinebeaMitsumi's market cap of $58,973.81M USD and a P/E ratio of 13.05. With a revenue of $69,756.22M USD, the company has shown a decrease in revenue growth of -3.91% over the last twelve months as of Q2 2024. However, it's worth noting that the company's gross profit margin stands at 24.97%, indicating a healthy profitability.
For those interested in more detailed analysis, InvestingPro offers additional tips and real-time data for both companies.
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