MALVERN, Pa. - Vishay Intertechnology, Inc. (NYSE: NYSE:VSH), a major manufacturer of discrete semiconductors and passive electronic components, has announced the acquisition of Ametherm, Inc. for approximately $31.5 million. Ametherm, recognized for its inrush current limiters and sensing thermistors, serves various sectors including automotive, industrial, aerospace/defense, and medical markets.
The acquisition, which involves a cash transaction, is part of Vishay's strategic initiative to accelerate growth by expanding its product portfolio and filling technology gaps. Ametherm's offerings include high-rated Negative Temperature Coefficient (NTC) and Positive Temperature Coefficient ( PTC (NASDAQ:PTC)) thermistors, available in customizable versions to meet specific circuit protection needs. Their products are particularly relevant for high energy applications, supporting current market requirements such as 800VDC for electric vehicles and future needs up to 2000VDC in pre-charge circuits.
Joel Smejkal, President and CEO of Vishay, highlighted the operational advantages that Ametherm's small package sizes, high voltages, and high-quality PTC and NTC temperature sensors will bring to Vishay. He also noted that the acquisition would enhance Vishay's engagement with design engineers through increased global promotion of Ametherm's products.
Marc Zandman, Vishay's Executive Chairman of the Board, reiterated the company's commitment to innovation, emphasizing the Board's support for management's investments in broadening the addressable market and enhancing the product and technology portfolio.
Vishay, which operates globally, is known for its extensive portfolio of electronic components essential to various innovative designs across multiple markets. The company is a Fortune 1,000 Company and is publicly traded on the NYSE under the ticker VSH.
This acquisition is expected to integrate Ametherm into Vishay's business framework, with the company anticipating that it will bolster Vishay’s position in the market by offering advanced technologies that meet evolving industry demands. The information in this article is based on a press release statement from Vishay Intertechnology, Inc.
In other recent news, Vishay Intertechnology has released its first-quarter earnings for 2024, reporting revenue of $746.3 million, slightly above their guidance range. Despite a 5% sequential revenue decline, primarily due to inventory adjustments in semiconductor products, the company experienced growth in the aerospace and defense sector, along with a slight increase in automotive revenue. Analysts noted a surge in aerospace and defense revenue by 34.2% year-over-year, and a 1% growth in automotive revenue.
However, the company faced challenges in the industrial and medical sectors, with revenue dropping by 6.2% and 18.3% respectively. These declines were attributed to economic uncertainties in China and semiconductor inventory digestion. Vishay Intertechnology anticipates the inventory correction to continue into the second quarter with a recovery expected in the latter half of the year.
The company's Q1 report also revealed plans to invest $2.6 billion from 2023 to 2028 for capacity expansion and innovation. They expect second-quarter revenues to be around $750 million with a gross margin of 21.7%. These recent developments highlight Vishay Intertechnology's strategic focus on capacity expansion and innovation, particularly in silicon carbide technology, as it navigates through market fluctuations.
InvestingPro Insights
In light of Vishay Intertechnology's (NYSE: VSH) acquisition of Ametherm, Inc., recent data and insights from InvestingPro offer a snapshot of the company's financial health and market position. With a market capitalization of approximately $3.2 billion, Vishay trades with a Price to Earnings (P/E) ratio of 13.37, reflecting investor sentiment on the company's earnings capacity. Adjusted for the last twelve months as of Q1 2024, the P/E ratio stands slightly lower at 12.49.
Investors may find comfort in Vishay's stable dividend history, as the company has maintained dividend payments for 11 consecutive years, currently yielding 1.72%. This consistent return to shareholders underscores Vishay's financial stability and commitment to providing ongoing value, even as analysts anticipate a sales decline in the current year.
Two InvestingPro Tips that stand out in the context of the recent acquisition are the company's low price volatility and the expectation that Vishay will remain profitable this year. The moderate price volatility suggests that Vishay's stock may offer a degree of stability, which could be appealing to investors seeking to avoid large swings in the market. Additionally, the prediction of profitability, despite expectations of a net income drop, indicates that Vishay is navigating market challenges with resilience.
For investors who want to delve deeper into Vishay's financials and strategic outlook, InvestingPro offers additional tips and a comprehensive analysis. There are 6 more InvestingPro Tips available, which can provide further insights into Vishay's liquidity, debt levels, and profitability metrics. To access these valuable tips and enhance your investment strategy, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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