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Advanced Energy Industries finalized its $400 million acquisition of Arizona-based Artesyn Embedded Power Business on Tuesday, creating a $1.3 billion company headquartered in Fort Collins.
Combined, the companies will employ about 11,000 workers, with more than 500 in Colorado — a slight increase from current staffing levels, Advanced Energy president and CEO Yuval Wasserman said in an interview.
About 80% of Colorado’s Advanced Energy workforce will be in Fort Collins and 20% in Denver, where the company has established corporate offices.
Otherwise, the acquisition will result in few changes in Fort Collins.
“We will continue to invest in our research and development center and labs and continue to increase our content in Fort Collins,” Wasserman said.
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Advanced Energy makes power and control products used in semiconductors, flat-panel displays including televisions, and other electronics.
The company announced in May it intended to acquire Artesyn, a global supplier and manufacturer of highly engineered power conversion products including AC-DC power supplies, DC input devices and board mounted DC-DC modules.
“These aren’t power supplies that charge your laptops,” Wasserman said. Artesyn’s equipment supplies power to systems “where any deviation from high performance can cause risk to life, property, yield or production,” he said. “They are extremely highly sensitive applications for which they’ve developed highly engineered solutions.”
Artesyn’s core markets include data centers, telecom infrastructure in next-generation 5G networks, embedded industrial power applications and medical power for diagnostic and treatment applications.
The acquisition is the largest in Advanced Energy history, and the eighth purchase in recent years.
Under the terms of the transaction, financing included a cash payment of about $375 million and assumption of about $25 million in liabilities, according to a news release.
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In 2018, Artesyn Embedded Power revenue was about $593 million.
The previous eight buys, “all of them small and all strategic … brought new technology and products to us,” and took Advanced Energy into new markets that it hadn’t served before, including medical equipment, aerospace, defense and life sciences, Wasserman said.
Artesyn Embedded Power will continue to operate under its own name, and market its products under the Artesyn brand, he said. The acquisition diversifies Advanced Energy’s product lines and decreases its reliance on the shrinking semiconductor market.
“We are a market leader in semiconductors,” Wasserman said. “We are a large fish in a small pond. We need to expand beyond the semi industry into new and adjacent markets.”
Calling the deal “the biggest and most transformative” in the company’s history, Wasserman said Artesyn’s products are “complementary” to Advanced Energy and do not overlap in technology, markets or applications. “They are fully complementary and additive” and open new paths that are at the center of the data economy.
Advanced Energy Industries’ primary manufacturing facility is in China or Asia, meaning the company has not been affected by the Trump administration’s trade war in China, Wasserman said.
When Advanced Energy ships a product to customers in China or Asia from its manufacturing facility in those areas, there is no tariff, Wasserman said. When they bring a product back to U.S. customers, it is integrated in a product and exported. “The net tariff is minimal to nothing,” he said. “We have not seen a lot of impact on the business because of the trade war and tariffs.”
Pat Ferrier is a senior reporter covering business, health care and growth issues in Northern Colorado.
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