TAIPEI (Taiwan News) — Taiwanese electronic parts supplier Yageo announced Wednesday that it will seek to acquire Japanese company Shibaura Electronics in a deal valued at over NT$14 billion (US$426 million).
The company has offered ¥4,300 (NT$929) per share for Shibaura, which represents a 37% premium over Shibaura’s closing price of ¥3,135 on Wednesday. The tender offer is set to begin on May 7, although Shibaura's board has yet to approve the bid, Nikkei Asia reported.
Shibaura Electronics, a global leader in the thermistor market, stated that it was unaware of Yageo's offer before the announcement. The company plans to assess the proposal and evaluate its potential to increase shareholder value before commenting.
The acquisition is strategically significant for Yageo as it seeks to expand its sensor business. Yageo said its decision to pursue the acquisition was based on a deep understanding of Shibaura.
Yageo, which reported NT$121.6 billion in revenue last year, is a major supplier of passive electronic components. Unlike active components, which can amplify or produce energy, passive components only store, consume, or release energy.
These components control and manage electrical signals in circuits, working alongside active components like chips. Resistors, capacitors, and inductors are common examples of passive components.
Shibaura, which posted ¥32.4 billion (NT$7 billion) in sales for the fiscal year ending in March 2024, offers a range of solutions for industries such as automotive, industrial equipment, home appliances, and medical applications. The company's expertise lies in its negative temperature coefficient thermistors.
Thermistors are thermal resistors—small passive electronic components that adjust their resistance in response to temperature fluctuations. These components play a vital role in temperature measurement, control, and compensation within electronic circuits.
With the growing demand for temperature sensors, particularly in electric vehicle motors and batteries, Yageo’s acquisition of Shibaura is seen as a critical step in expanding its presence in the sensor market.
The Taiwanese firm first considered collaborating with Shibaura in September and had made requests for meetings, but Shibaura did not respond. Yageo submitted a letter of intent to acquire Shibaura on Dec. 30 and is following the corporate takeover procedures per the guidelines set by Japan’s Ministry of Economy, Trade, and Industry.
Yageo anticipates that the acquisition will accelerate Shibaura's growth by enhancing its research and development capabilities and boosting its production capacity in Japan. Additionally, Yageo plans to expand Shibaura's customer base globally, particularly in the Americas and Europe.
Yageo has a proven track record in successful acquisitions. It has previously acquired Nexensos, a German temperature sensor business, and Telemecanique Sensors, a French industrial sensor division.
Founded in Taiwan in 1977, Yageo operates 61 manufacturing facilities and 20 research and development centers across 35 countries, with an annual revenue of over US$4 billion and a workforce of over 40,000 employees worldwide.
