The purchase price, of €13.20 per share, represents a 78.4 percent premium over Tronic's closing share price on July 7, 2016, the trading day immediately preceding the stock trading suspension.
The deal is set to be executed through TDK's German subsidiary EPCOS, which it acquired in 2008. Thales Avionics has informed EPCOS that it wishes to remain a strategic shareholder of Tronics. Subject to the success of EPCOS’ offer, Thales Avionics and EPCOS shall enter into a shareholders’ agreement to organize their relationships as shareholders of Tronics.
Tronics' supervisory board has recommended acceptance of the offer to shareholders on a preliminary basis.
TDK has set one of its key strategies as growth in the field of sensors. Through the acquisition of Tronics, TDK would be able to broaden its portfolio of sensor technologies, which already includes temperature, pressure and magnetic/TMR-based technologies. The integration of Tronics would add inertial sensors for industrial, automotive and consumer electronics to TDK's business.
In addition to inertial sensors, Tronics’ portfolio of technologies also includes components for gas sensors, infrared sensors, micro-mirrors, micro-optics and micro-actuators as well as forward-looking BioMEMS and microfluidic devices for in-vitro diagnostic and DNA analysis.
Tronics was founded in 1997 and has wafer fabs in Europe and the US.
"Following the acquisition of the magnetic sensor manufacturer Micronas, which was announced in December 2015, the acquisition of Tronics represents a logical next step in TDK’s strategy to expand its activities in the sensors area," said Joachim Zichlarz CEO of EPCOS, in a statement issued by Tronics.
Tronics' CO Pascal Langlois said: "TDK’s solid financial basis and extensive know-how in materials and production engineering will provide a very good basis for strong future growth of Tronics’ cutting-edge sensor technologies."