News

AcBel Announces to Acquire the Power Conversion Division of ABB

(Taipei, January 20, 2023)

AcBel Polytech Inc. (“AcBel”) (TWSE:6282) will acquire 100% stake in ABB Ltd’s (“ABB”) (SWX:ABBN) Power Conversion division (“ABB Power Conversion”, formerly known as Lineage Power) through its subsidiary for an aggregate consideration of US$505 million (~NT$15.3 billion) in an all-cash deal. 

* ABB Power Conversion is a leading provider of power products, systems and services based in U.S. It offers innovative solutions for telecom, data center, supercomputing, EV charging infrastructure and warehouse automation applications, etc.

* The transaction will enable AcBel to strengthen its product portfolio, grow its customer base and enhance its local research development,  manufacturing, commercial, and service capabilities in the U.S.

* The transaction is expected to be funded by a combination of funding sources including our corporate funds and debt financing.

* The transaction is subject to regulatory approvals and is expected to close in the second half of 2023.

AcBel and ABB jointly announced today that an agreement has been entered into under which AcBel will acquire 100% stake in ABB’s Power Conversion division (formerly known as Lineage Power), through its subsidiary for an aggregate consideration of US$505 million (~NT$15.3 billion) in an all-cash deal.

ABB Power Conversion is a leading provider of power products, systems and services, headquartered in Plano, Texas with manufacturing facilities located in Mexico, China and India. With over 50 years of experience serving the U.S. telecom market, ABB Power Conversion has been essential to powering multiple generations of U.S. telecom infrastructure. The opportunities brought by worldwide 5G deployment present massive growth opportunities for ABB Power Conversion given its leadership in technology, product quality and reliability as well as lifecycle services. In addition to telecom, ABB Power Conversion’s leading technologies are used in high-end applications such as data centers, supercomputing, EV charging infrastructure and warehouse automation, providing further drivers for its business growth. ABB Power Conversion’s revenue primarily comes from the U.S., with revenues of approximately US$440 million (~NT$13.3 billion) and adjusted income from operations of US$54 million (~NT$1.6 billion) in 2022. 

The combination will create a comprehensive platform that is more resilient, with an extensive product portfolio, balanced geographic presence and a variety of end applications including 5G, data center, supercomputing, EV charging infrastructure and warehouse automation. By integrating ABB Power Conversion’s cutting-edge technologies and development expertise in system solutions, AcBel will accelerate its progress of expanding into an integrated solutions provider. Furthermore, the collaboration will allow AcBel to grow its customer base in the U.S., strengthen its local service capabilities and extend its network of global manufacturing facilities.

Jerry Hsu, Chairman of AcBel commented: “We sincerely welcome ABB Power Conversion to join the AcBel family. We believe this transaction is beneficial to both parties as we are highly complementary to each other in product portfolio, customer base and expertise. By combining AcBel’s core capabilities in smart manufacturing and original design manufacturing with ABB Power Conversion’s cutting-edge technologies in premium and high-quality products along with its advanced system solutions, we will be able to establish a more comprehensive product portfolio and expand our solution offerings to continue to create value for our customers and investors.”

“We are very happy to have found an excellent new home for this specialized business that can go from strength to strength under the leadership of AcBel in the future,” said Björn Rosengren, ABB CEO.

The transaction is expected to be funded by a combination of funding sources including our corporate funds and debt financing.

The transaction is subject to regulatory approvals and is expected to close in the second half of 2023.

Morgan Stanley acted as the exclusive financial advisor to AcBel, Sullivan & Cromwell LLP acted as the legal counsel to AcBel and Covington & Burling LLP acted as the legal counsel in relation to the Committee on Foreign Investment in the United States (CFIUS) matters on the transaction.

AcBel Polytech Inc. is one of the global leaders in the manufacture and design of switching power supplies. Besides offering power solutions for a wide range of applications including PCs, smart home appliances, smartphones, servers, and networking equipment, AcBel also emphasizes opportunities in sustainable energy and electric vehicles. AcBel is headquartered in Taiwan with over 8,800 employees worldwide, the company aims to power the world with sustainable energy and high efficiency power supplies. www.acbel.com

ABB is a technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. The company’s solutions connect engineering know-how and software to optimize how things are manufactured, moved, powered and operated. Building on more than 130 years of excellence, ABB’s ~105,000 employees are committed to driving innovations that accelerate industrial transformation. www.abb.com

Contacts:

Fiona Hsueh, Spokesperson
+886-2-2621-7672 (ext. 32260)
[email protected]

Lily Chen, Investor Relations
+886-2-2621-7672 (ext. 32133)
[email protected]