Power-One Inc. announced Thursday 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.”