Diodes Incorporated has successfully acquired ElevATE Semiconductor, a fabless semiconductor company based in San Diego that designs and produces advanced integrated circuits for the Automated Test Equipment (ATE) industry. The acquisition, carried out in an all-cash deal worth $250 million, will help expand Diodes’ analog and mixed-signal product line along with enhancing its foothold in growth markets that have higher semiconductor complexity and testing needs. ElevATE develops highly integrated, low-power analog and mixed-signal solutions designed to address demanding semiconductor testing applications. “The completion of the ElevATE acquisition marks an important milestone in advancing Diodes’ portfolio and content expansion initiatives to capitalize on the growing demand for semiconductor test solutions,” said Gary Yu, President and Chief Executive Officer of Diodes Incorporated.
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“First, I would like to welcome ElevATE employees to the Diodes’ family. ElevATE’s differentiated technology, exceptional engineering capabilities, strong customer relationships, and leadership in the ATE market complement Diodes’ broad analog and power portfolio, manufacturing scale, and global organization. Together, we are well positioned to deliver broader solutions to customers, while expanding our participation in higher-value analog and mixed-signal applications.” After the transaction, ElevATE will function as a product range of Diodes, retaining their customers and accessing the company’s worldwide facilities for production, distribution and sale of its products. ElevATE is projected to bring in a revenue of about $50 million in its first year of operation after the takeover, and it is forecasted to add value to Diodes in terms of their revenues, gross margins, and earnings per share.
