German chip maker Infineon Technologies AG says it has agreed to pay $3 billion in cash for California-based International Rectifier, which produces power-management components used in everything from cars to satellites.
Infineon said in Wednesday's announcement that it's paying $40 per share for El Segundo-based International Rectifier. The deal has been approved by both boards, but must win regulatory permission and meet the approval of International Rectifier shareholders.
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Infineon, based in Munich, has 26,700 employees and makes chips for a wide variety of products including cars, medical equipment and mobile devices. It says combining with International Rectifier will increase the scale and efficiency of its own power-management business.
International Rectifier was founded in 1947 and has 4,160 employees.