(RTTNews) – Diodes Incorporated (DIOD), a supplier of semiconductor products, said on Tuesday it has agreed to buy ElevATE Semiconductor Inc. in an all-cash deal valued at $250 million to expand its analog and mixed-signal portfolio.
ElevATE, based in San Diego, California, is a fabless chip company that designs integrated circuits for automated test equipment.
Diodes said the acquisition is expected to be immediately accretive to revenue, gross margin and earnings per share, and to add about $50 million of revenue in the first 12 months after closing. Revenue from the business is forecast to grow at a compound annual rate of more than 20% over the next four years, with gross margin significantly above Diodes’ corporate average.
The boards of both companies and ElevATE’s stockholders have approved the deal. Diodes expects the transaction to close in the second half of 2026.
In pre-market activity on Nasdaq, shares of Diodes were up 1.84 percent, changing hands at $93.99, after closing Monday’s regular session 4.24 percent lower.
