Power-One Inc. announced Thursday that it has signed an agreement with Magnetek Inc. to acquire its Power Electronics Group. Magnetek’s Power Electronics Group sells power supplies and alternative energy products.
Power-One will acquire the Power Electronics Group for $71.7 million in cash and an assumption of $16.7 million in debt. The transaction is expected to close in October, 2006.
Bill Yates, CEO of Power-One said: “The acquisition positions us as the sixth largest power supply company in the world. The combined purchasing power will enable us to continue to compete effectively in the higher-volume markets, including servers and storage. Additionally, through the acquisition we will have our own 230,000 square foot manufacturing plant in China that is designed for high-volume and low-cost production.”