Under the terms of the agreement, Advanced Energy has agreed to pay $364m in cash and assume liabilities of approximately $36m for Artesyn’s Embedded Power business, which includes the Artesyn and Astec brands.

Artesyn EP is a provider of application-specific power supplies for demanding applications. It supplies and manufactures highly engineered power conversion products, including AC-DC power supplies, DC input devices and board mounted DC-DC modules.

The deal, which excludes Artesyn’s Embedded Computing and Consumer Products, is expected to create $1.3bn premier power conversion company with global presence and scale across critical technologies and markets, AEIS said.

Advanced Energy president and CEO Yuval Wasserman said: “We are excited by this highly strategic acquisition of Artesyn EP, transforming Advanced Energy into a highly diversified, pure-play power house with a global platform for accelerated earnings growth.”

Advanced Energy said that the deal will expand its addressable market to $7.5bn through the addition of new growth verticals, as well as broadens and diversifies into multiple, stable growth verticals and customers.

Wasserman added: “Artesyn EP fits perfectly into our diversification strategy by adding a broad set of new growth verticals, industry leading power technologies, deep customer relationships and a world-class team.

“AE’s semiconductor customers will also benefit from the expanded capabilities, broadened product offerings and increased stability and scale.

“With the anticipated immediate accretion and future synergies of this acquisition, we are positioning AE for accelerated profitable and sustainable growth.”

Scheduled to be closed during the second half of 2019, the transaction is subject to the satisfaction of customary closing conditions, including receipt of international regulatory approvals.

Artesyn Embedded Technologies CEO Jay Geldmacher said “Together with AE, we form a consolidated platform with a synergistic and complementary product portfolio, which expands our industrial business into semiconductor markets and provides our existing customers access to new technologies.”