LOGO
FOR IMMEDIATE RELEASE
Diodes Incorporated Signs Definitive Agreement for Anachip
Acquisition
o Acquisition expected to be accretive to 2006 earnings
Westlake Village, California, December 20, 2005-- Diodes Incorporated (Nasdaq:
DIOD), a leading manufacturer and supplier of high quality discrete
semiconductors, announced today it signed a definitive stock purchase agreement
to acquire Anachip Corporation, a Taiwanese fabless analog IC company.
Headquartered in the Hsinchu Science Park in Taiwan, Anachip's main product
focus is Power Management ICs. Anachip's products are widely used in LCD
monitor/TV's, wireless 802.11 LAN access points, brushless DC motor fans,
portable DVD players, datacom devices, ADSL modems, TV/satellite set-top boxes,
and power supplies.
For the year ended December 31, 2005, revenue from Anachip's Power Management
ICs is expected to be approximately US$35 million, generating approximately
US$2.5 million in net income, and the acquisition is expected to be accretive to
Diodes' 2006 earnings. The all-cash transaction of NT$20 per Anachip share
(approximately US$30 million) is expected to in close mid-January 2006. The
selling shareholders include Lite-On Semiconductor Corporation (which owns
approximately 60% of Anachip's outstanding capital stock and holds approximately
23% of Diodes, Inc. common stock), and two Taiwanese venture capital firms
(together owning approximately 20% of Anachip's stock), as well as current and
former Anachip employees.
Commenting on the acquisition, Dr. Keh-Shew Lu, President and CEO of Diodes,
Inc., said, "We are looking forward to integrating Anachip into Diodes'
strategic business model. We plan to leverage Diodes' discrete component
technology, our world-class packaging capabilities and our sales and marketing
channels."
The completion of the transaction is subject to the terms of the definitive
agreement, the receipt of required approvals and other customary conditions.
About Anachip Corporation
Originally established in 1996, Anachip is an international corporation with
worldwide headquarters located in Hsinchu Science Park in Taiwan. This main
facility is home to corporate, engineering and testing facilities. In support of
its customers, Anachip has sales offices in the Silicon Valley, Seoul Korea,
Taipei and Kaohsiung Taiwan, Shenzhen and Shanghai, China, and a worldwide
network of authorized distributors in Europe, USA, China, Taiwan, Japan, Korea,
and India.
About Diodes Incorporated
Diodes Incorporated (Nasdaq: DIOD) is a leading manufacturer and supplier of
high-quality discrete semiconductor products, primarily to the communications,
computing, industrial, consumer electronics and automotive markets. The Company
operates four Far East subsidiaries, Diodes-China (QS-9000 and ISO-14001
certified) in Shanghai, our newest manufacturing facility in China,
Diodes-Shanghai, Diodes-Taiwan (ISO-9000 certified) in Taipei, and Diodes-Hong
Kong. Diodes-China and Diodes-Shanghai manufacturing focus are on subminiature
surface-mount devices destined for wireless devices, notebook, flat panel
display, digital camera, mobile handset, set-top box, DC to DC conversion, and
automotive applications, among others. Diodes-Taiwan is our Asia-Pacific sales,
logistics and distribution center. Diodes-Hong Kong covers sales, warehouse and
logistics functions. The Company's 5" wafer foundry, Diodes-FabTech (QS-9000
certified), specializes in Schottky products and is located just outside Kansas
City, Missouri. The Company's ISO-9001:2000 corporate sales, marketing,
engineering and logistics headquarters is located in Southern California. For
further information, including SEC filings, visit the Company's website at
http://www.diodes.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of
1995: Any statements set forth above that are not historical facts are
forward-looking statements that involve risks and uncertainties that could cause
actual results to differ materially from those in the forward-looking
statements, including, but not limited to, any forecast of revenues or gross
margin. Potential risks and uncertainties include, but are not limited to, such
factors as fluctuations in product demand, the introduction of new products, the
Company's ability to maintain customer and vendor relationships, technological
advancements, impact of competitive products and pricing, growth in targeted
markets, risks of foreign operations, the following risks and uncertainties that
relate specifically to the acquisition: (i) the risk that the transaction will
not be consummated, including as a result of any of the conditions precedent;
(ii) the ability to obtain government approvals required for closing the
acquisition; (iii) the risk that the Anachip businesses will not be integrated
successfully into Diodes Incorporated; (iv) the risk that the expected benefits
of the acquisition may not be realized, including the realization of accretive
effects from the acquisition; and (v) Diodes Incorporated's increased
indebtedness after the acquisition, and other information detailed from time to
time in the Company's filings with the United States Securities and Exchange
Commission.
Source: Diodes Incorporated
CONTACT:
Crocker Coulson, President, CCG Investor Relations, (310) 231-8600 x 103,
e-mail: crocker.coulson@ccgir.com
or Carl Wertz, Chief Financial Officer, Diodes, Inc., (805) 446-4800.
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Recent news releases, annual reports, and SEC filings are available at the
Company's website: http://www.diodes.com. Written requests may be sent directly
to the Company, or they may be e-mailed to: diodes-fin@diodes.com.
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