El Segundo, CA., August [15], 2022 – Navitas Semiconductor (Nasdaq: NVTS), the industry leader in gallium nitride (GaN) power ICs, today announced the acquisition of GeneSiC Semiconductor, a silicon carbide (SiC) pioneer with deep expertise in SiC power device design and process. The transaction is immediately accretive to Navitas as GeneSiC is highly profitable, with more than 25% EBITDA margins. Calendar 2022 revenues are expected to be approximately $25 million with 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 $20 billion per year by 2026.
“GeneSiC is an ideal partner for Navitas with their focus and success in developing industry-leading SiC technology,” said Gene Sheridan, Navitas CEO and co-founder. “Navitas has significant investments in global sales, operations and technical support teams, along with system design centers in EV and data centers. These capabilities are a perfect complement to GeneSiC and will further accelerate their growth in both synergistic and new customers and markets. Today, we have taken a major step in our company’s mission to ‘Electrify Our World™’ and drive our planet’s transition from fossil fuels to clean, efficient, electrical energy.”
“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,” said GeneSiC President Dr. Ranbir Singh. “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.
In power semiconductors, both GaN and SiC are superior materials to legacy silicon, enabling higher speeds, greater energy savings, faster charging, and significantly reduced size, weight, and cost. Together, these complementary, next-generation materials address a broad range of applications from 20W smartphone chargers, to 20kW EV chargers, to 20MW grid-infrastructure systems and everything in between. With over 500 customers, the GeneSiC acquisition delivers diversified and synergistic markets and customers, and accelerates Navitas’ revenue in strategic, higher-power applications:
The acquisition of GeneSiC is expected to be immediately accretive to Navitas’ earnings per share. Total consideration consisted of approximately $100 million in cash, 24.9 million shares of Navitas stock and possible earn-out payments of up to $25 million conditioned on the achievement of substantial revenue targets for the GeneSiC business over the four fiscal quarters ending September 30, 2023. More information about GeneSiC is available at ir.navitassemi.com.
About Navitas
Navitas Semiconductor (Nasdaq: NVTS) is the industry leader in gallium nitride (GaN) power ICs, founded in 2014. GaNFast™ power ICs integrate GaN power with drive, control, sensing and protection to enable faster charging, higher power density and greater energy savings for mobile, consumer, data center, EV and solar markets. Over 165 Navitas patents are issued or pending. Over 50 million units have been shipped with zero reported GaN field failures, and Navitas introduced the industry’s first and only 20-year warranty. Navitas is the world’s first semiconductor company to be CarbonNeutral®-certified.
About GeneSiC
GeneSiC Semiconductor is a pioneer and world-leader in silicon carbide (SiC) technology. Leading global manufacturers depend on GeneSiC’s technology to elevate the performance and efficiency of their products. GeneSiC’s electronic components run cooler, faster, and more economically and play a key role in conserving energy in a wide array of high-power systems. GeneSiC holds leading patents on wide band-gap power device technologies, a market that is projected to reach more than $5 billion by 2025. Our core strengths of design, process and technology add more value to our customers’ end-product, with performance and cost metrics setting new standards in the silicon carbide industry.
Forward-Looking Statements are omitted