© mikael damkier dreamstime.com
Magnachip to be acquired in a $1.4 billion deal
The South Korean chipmaker has entered into a definitive agreement with private equity fund, Wise Road Capital, to be acquired in a cash-deal valued at USD 1.4 billion.
Under the terms of the Agreement, Magnachip shareholders will receive USD 29.00 in cash for each share of Magnachip's common stock they currently hold. The all-cash transaction has an equity value of approximately USD 1.4 billion. Following the closing of the deal, Magnachip's management team and employees are expected to continue in their roles, and the company will remain based in Cheongju, Seoul and Gumi, South Korea. "This transaction is in the best interests of all of our stakeholders, including shareholders, customers and employees. It will provide an excellent opportunity to accelerate our MX 3.0 growth strategy. Given their deep industry expertise, Wise Road Capital is an ideal partner for Magnachip, and we look forward to working with them as we chart the next phase for our company. We remain grateful to our customers for their trust and to our fellow employees for their unwavering commitment to delivering industry-leading products to customers worldwide," says Magnachip's CEO, YJ Kim, in a press release. Wise Road will, according to the press release, work together with Magnachip's management team to pursue the next step in the chipmakers growth strategy, aiming for the top spot on the global display and power markets. The transaction is expected to close during the second half of 2021.