Capella Microsystems surges to limit on merger with Vishay
Taiwan News, Staff Writer
2014-07-14 12:38 PM

German-based Vishay Intertechnology announced a plan last Friday to acquire Taiwan’s Capella Microsystems (3582), a fabless IC design company, for approximately NT$6.05 billion. Vishay pays a premium of approximately 22 percent per share above Capella’s Friday closing price. Capella share price jumped to its daily limit of NT$121.5 at Monday’s opening session, the first trading day since announcement.

Both entities are scheduled to complete their merger next January. Vishay Taiwan will be the surviving company and Capella will vanish. 2014 has been a tough year for Capella, whose Q1 revenue encountered an annual loss of 53 percent and June revenue set a new record low at NT$73.42 million, down 21 percent from the previous month and 62 percent from last year. The loss was attributed to losing out on new orders from Samsung and inventory adjustment.

Vishay is a semiconductor and passive electronic components manufacturer, and Capella produces sensor products. This merger can help Vishay seize business opportunities in the Internet of Things (IoT) and wearable devices.

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