Diodes Incorporated announced it has entered into a definitive agreement to acquire ElevATE Semiconductor, Inc. (ElevATE) in an all-cash transaction for $250 million.
ElevATE is a fabless semiconductor company based in San Diego, California that specializes in the development of integrated circuits (IC) for the Automated Test Equipment (ATE) industry. ElevATE addresses the industry’s most complex ATE challenges by designing the lowest power and highest density solutions, with the goal of providing the lowest possible cost of test.
Highlights of the transaction include:
- Combines ElevATE’s ATE IC technology leadership with Diodes’ broad product portfolio, manufacturing scale and global sales reach to increase penetration of the ATE market;
- Expected to be immediately accretive to Diodes’ revenue, gross margin, and earnings per share;
- Anticipated to add approximately $50 million of revenue in the first twelve months post-close, with revenue expected to grow at a CAGR of greater than 20% over the next four years with gross margin significantly higher than Diodes’ corporate average; and
- Expands Diodes’ analog and mixed signal product offerings as well as provides significant opportunity for Diodes’ portfolio in applications within the ATE market.
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“The explosive growth, increasing complexity, and higher performance requirements of ICs used in automotive, industrial, data center, and AI applications are driving greater semiconductor production volumes, and in turn, increasing demand for automated test equipment,” commented Gary Yu, President and Chief Executive Officer of Diodes. “This acquisition positions Diodes to capture accelerated growth opportunities across the ATE market with an expanded analog and mixed-signal portfolio. It also enhances our ability to provide broader solutions to customers and launch a new advanced product line that will drive increased dollar content in ATE applications. We look forward to welcoming the talented ElevATE team into the Diodes family.”
Also commenting on the proposed acquisition, Jan Gaudestad, Chief Executive Officer of ElevATE said, “ElevATE and Diodes share a performance-driven culture and an uncompromising focus on quality, making this an ideal combination. By uniting our high-density, low-power semiconductor IC solutions with Diodes’ broad analog and power IC portfolio along with a global manufacturing footprint, we emerge as a powerful new force in the ATE IC market. This union significantly expands our capabilities, instantly offering our customers a much larger portfolio to elevate their tester performance. Together, we are uniquely positioned to increase our global reach, accelerate our product roadmap, and deliver next-generation chip innovations at scale that will define the future of semiconductor testing.”
The Boards of both companies and the stockholders of ElevATE have approved the transaction, which is still subject to customary closing conditions, including regulatory approvals. The transaction is expected to close during the second half of 2026.
SOURCE: Diodes