Mitsubishi Electric Corporation reported that on November 3, it agreed to acquire the power device sales business currently handled by Powerex. Under the terms of the acquisition agreement, Mitsubishi Electric U.S. will take over the power device sales business during January 2018. Financial terms of the acquisition were not disclosed.
Mitsubishi Electric points out that its power devices are sold in Japan, China, Europe, India, Southeast Asia, and the Americas. The company projects significant growth in the regions automotive market which would lead to greater demand for their power devices. The company also says that putting the business in the wholly owned subsidiary of Mitsubishi Electric U.S., will enable it to focus more on its global customers.
Benefits of the Acquisition
First, Mitsubishi Electric expects stronger customer support for global manufacturing networks based in the Americas.
Secondly, the company says that it will be able to provide stronger collaboration and technical support for the automobile market and automobile manufacturers. Also, the U.S. subsidiary says it will be able to share resources with its existing businesses.
Following the acquisition, Mitsubishi Electric says it will continue supporting Powerex’s business development as a company co-owner.