18 August 2022
El Segundo, California-based Navitas Semiconductor Corporation, manufacturer of gallium nitride (GaN) power ICs, has announced the acquisition of Dulles, VA, USA based silicon carbide (SiC) device maker GeneSiC Semiconductor, Inc. This acquisition was part of Navitas’ second quarter financial details presented on 15 August 2022. According to Navitas, the acquisition of GeneSiC is expected to be immediately accretive to Navitas’ earnings per share. Total consideration consisted of approximately US $100 million in cash, 24.9 million shares of Navitas stock and possible earn-out payments of up to US $25 million, conditioned on the achievement of substantial revenue targets for the GeneSiC business over the four fiscal quarters ending 30 September, 2023.
GeneSiC is highly profitable, with total calendar 2022 revenues expected to be approximately $25 million and demonstrated annual growth rates of over 60%. The combined company creates a comprehensive, industry-leading technology portfolio in next-generation power semiconductors – both GaN and SiC – with an aggregate market opportunity estimated at over US $20 billion per year by 2026, said Navitas in a statement.
Navitas expects the GeneSiC acquisition will accelerate its expansion into higher-power markets by two to three years, with immediate Q3 revenue in synergistic solar, energy storage and electric vehicle (EV) charging markets, among other industrial markets.
Gene Sheridan, Navitas CEO and co-founder stated, “I am pleased with our second quarter performance and we are truly excited by our acquisition of GeneSiC.” “While we see significant softness in the China smartphone market, our leadership in the GaN mobile charger market has never been stronger. In the second quarter, we added over twenty new customer launches, set new industry benchmarks in ultra-fast charging, and achieved significant progress in our expansion markets of datacenter, solar and EV,” added Sheridan.
According to Navitas, GeneSiC is an ideal SiC partner for Navitas with its industry-leading performance, world-class robustness, and one of the broadest product portfolio in SiC from 650 V to 6,500 V. GeneSiC has focused on core SiC technology, while Navitas has invested significantly in global sales, operations and technical support teams, along with system design centers in EV and datacenters – all of which can be immediately leveraged to accelerate GeneSiC’s already fast-growing business, asserted Navitas.
In a statement, GeneSiC’s president Dr. Ranbir Singh stated, “GeneSiC’s patent-protected, advanced technology and innovative, experienced team are critical factors in the growth of our company. Our SiC MOSFETs offer the industry’s highest performance, reliability, and ruggedness – parameters critical towards widespread adoption of electric vehicles and associated infrastructure.” He added, “With almost 20 years of leading-edge R&D, proven platforms, over 500 diverse customers, and growing revenue and profitability, we can leverage Navitas’ mass-production expertise and go-to-market strategy to accelerate SiC revenues. We are very excited about this new partnership.”
Dr. Singh joins Navitas as executive vice-president for the GeneSiC business and Navitas expects to retain all members of the GeneSiC team.