Vishay Intertechnology Acquires Remaining Shares Of Capella Microsystems

(RTTNews) - Vishay Intertechnology Inc. (VSH) said that it acquired all of the remaining outstanding shares of Taiwan based Capella Microsystems Inc. for approximately NT$668.2 million or US$21.0 million. Capella is a fabless IC design company specializing in optoelectronic products.

Vishay initially acquired 88.95% of Capella's outstanding shares in a tender offer, which was completed in September 2014. The aggregate purchase price for Capella was approximately NT$6.05 billion or approximately US$201.2 million.

Vishay noted that it funded the acquisition mostly with cash on-hand, and borrowed $53 million on its revolving credit facility to achieve future flexibility given the legal entity and financial structure utilized for the acquisition.

As of the date Vishay acquired its controlling interest, Capella had approximately $50 million of cash, cash equivalents, and short-term investments, and no long-term debt.

Due to the nature of Capella's business, approximately $75 million of the purchase price is allocated to definite-lived intangible assets.

The acquisition of the non-controlling interest had no impact on the value ascribed to these intangible assets. The annual amortization expense of the intangible assets will be approximately $10 million.