Advanced Energy Acquires Airity Technologies
Advanced Energy (Nasdaq: AEIS) has acquired Airity Technologies, a company specializing in Gallium Nitride (GaN)-based high voltage power conversion products. This acquisition aims to strengthen Advanced Energy's portfolio in semiconductor, industrial, and medical markets by leveraging Airity's high-frequency power conversion technologies. CEO Steve Kelley emphasized that this move would bolster the company's leadership and innovation in precision power conversion. Although financially insignificant for 2024, the acquisition's terms were not disclosed.
- Acquisition of Airity Technologies enhances Advanced Energy's technological capabilities in GaN-based high voltage power conversion.
- Broadened application reach in semiconductor, industrial, and medical markets.
- Expected to strengthen leadership and innovation in precision power conversion.
- Acquisition expected to be immaterial to 2024 financial forecasts.
- Terms of the acquisition were not disclosed, leaving financial specifics unclear.
Insights
The acquisition of Airity Technologies by Advanced Energy Industries brings a strategic advantage through the integration of Gallium Nitride (GaN) based high-voltage power conversion technology. GaN is known for its superior performance over traditional silicon-based devices, offering higher efficiency, faster switching speeds and greater thermal stability. This aligns well with Advanced Energy's goal to enhance its power density and response time in target markets like semiconductor, industrial and medical applications.
For retail investors, understanding the significance of GaN technology is key. GaN transistors can operate at higher temperatures and voltages with greater efficiency, which is important for applications that demand compact and high-performance power solutions. This could potentially reduce costs and improve performance for end-users, making Advanced Energy's products more competitive.
However, the announcement states that the acquisition will be immaterial to 2024 financial forecasts, indicating that the financial benefits may take longer to materialize. Investors should view this acquisition as a long-term strategic play, rather than expecting immediate financial returns.
From a financial perspective, the acquisition of Airity Technologies by Advanced Energy Industries will not significantly impact the company's financial performance in the near term, as stated in the announcement. This suggests that the acquisition cost is relatively minor compared to the company's overall financials or that the expected revenue contribution from Airity Technologies will not be substantial in the immediate future.
It's worth noting that acquisitions often come with integration risks and potential hidden costs. Investors should monitor subsequent financial reports for any updates on the integration process and any unexpected expenses or delays. While the acquisition may not affect 2024 financial forecasts, it could enhance the company's long-term growth prospects by expanding its technology portfolio and market reach.
Long-term investors should consider the potential for increased market share and technological leadership in the precision power conversion space as a positive aspect, despite the near-term financial neutrality.
For the semiconductor, industrial and medical markets, the integration of GaN technology through the acquisition of Airity Technologies could signify a substantial competitive edge for Advanced Energy Industries. GaN's attributes align well with the growing demand for more efficient and compact power solutions, which is particularly relevant in the semiconductor industry where space and performance are critical.
Advanced Energy's focus on leveraging this technology to address a broader range of applications suggests a strategic move to expand its market presence and cater to evolving customer needs. This could potentially lead to new customer acquisitions and strengthened relationships with existing customers.
However, the company's statement that the acquisition is immaterial to 2024 financial forecasts implies that market penetration and customer adoption will take time. Investors should watch for future announcements regarding new product launches or partnerships that leverage Airity's technology, as these will be indicators of the acquisition’s success in driving market growth.
Airity adds GaN-based high voltage power technologies to expand Advanced Energy’s reach
Airity Technologies adds a portfolio of Gallium Nitride (GaN) based high frequency, power conversion and pulsing technologies, which enable a step function improvement in power density and response time. Leveraging Airity’s proven technologies, Advanced Energy will address a broader range of applications in its target markets.
“The acquisition of Airity Technologies extends our technology leadership and will accelerate our innovation in the precision power conversion market,” said Steve Kelley, Advanced Energy’s president and chief executive officer. “We have worked closely with the Airity team over the past year and are very excited that they will be joining Advanced Energy.”
The company expects the acquisition to be immaterial to 2024 financial forecasts. Terms were not disclosed.
About Advanced Energy
Advanced Energy Industries, Inc. (Nasdaq: AEIS) is a global leader in the design and manufacture of highly engineered, precision power conversion, measurement and control solutions for mission-critical applications and processes. Advanced Energy’s power solutions enable customer innovation in complex applications for a wide range of industries including semiconductor equipment, industrial production, medical and life sciences, data center computing, networking and telecommunications. With engineering know-how and responsive service and support for customers around the globe, the company builds collaborative partnerships to meet technology advances, propels growth of its customers and innovates the future of power. Advanced Energy has devoted four decades to perfecting power. It is headquartered in
For more information, visit www.advancedenergy.com.
Advanced Energy | Precision. Power. Performance. Trust.
Forward-Looking Statements
This release and statements we make on the above announced conference call contain, in addition to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this report that are not historical information are forward-looking statements. For example, statements relating to our beliefs, expectations and plans are forward-looking statements, as are statements that certain actions, conditions, or circumstances will continue. The inclusion of words such as "anticipate," "expect," "estimate," "can," "may," "might," "continue," "enables," "plan," "intend," "should," "could," "would," "likely," "potential," or "believe," as well as statements that events or circumstances "will" occur or continue, indicate forward-looking statements. Forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to: (a) supply chain disruptions and component shortages that may impact our ability to timely manufacture products and deliver to customers; (b) the effects of global macroeconomic conditions upon demand for our products and services, including supply chain cost increases, inflationary pressures, economic downturns, and volatility and cyclicality of the industries we serve; (c) the impact of political and geographical risks, including trade and export regulations, other effects of international disputes, war, terrorism, or geopolitical tensions; (d) managing backlog orders; (e) our ability to develop new products expeditiously and be successful in the design win process; (f) delays in capital spending by end-users in our served markets; (g) the risks and uncertainties related to the integration of acquired companies including SL Power Electronics; (h) the continuing spread of COVID-19 and its potential adverse impact on our operations; (i) our ability to avoid additional costs and lawsuits after the solar inverter wind-down; (j) the accuracy of our assumptions on which our financial statement projections are based; (k) the timing of orders received from customers; (l) our ability to realize benefits from cost improvement efforts including avoided costs, restructuring plans and inorganic growth; (m) unanticipated changes to management’s estimates, reserves or allowances; and (n) changes and adjustments to the tax expense and benefits related to the
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For Investor Relations inquiries, contact:
Andrew Huang
Investor Relations
ir@aei.com
+1 970 407 6555
For Press inquiries, contact:
Simon Flatt
Grand Bridges for Advanced Energy Industries, Inc.
aei@grandbridges.com
+1 415 800 4529
Source: Advanced Energy Industries, Inc.
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