Microsemi Agrees to Acquire 20% of Diodes for $1.6 Million

Microsemi Corp. of Santa Ana, a manufacturer of military and aerospace power-supply diodes, said Wednesday it has agreed to acquire a 20% stake in Diodes Inc. of Chatsworth for $1.6 million.

Microsemi’s proposed purchase is part of a recapitalization that would increase the number of Diodes shares outstanding to 4.2 million from 2.2 million and provide a cash infusion of about $2.3 million.

Under the plan, Miocrosemi would buy 800,000 newly issued shares of Diodes common stock for $2 per share.

Another 200,000 newly issued shares would be bought by other investors for $400,000, while Diodes officers and employees would acquire 1 million shares for about $300,000 in cash and an unspecified dollar amount of loans.

Microsemi Vice President David Sonksen said the company is interested in Diodes because its sales to domestic and international commercial customers complement Microsemi’s military and aerospace markets. He said Microsemi might increase its investment in Diodes in the future.

The recapitalization is subject to approval by Diodes shareholders.