Advanced Energy Discloses New Offer To Acquire XP Power; Is The Latest Proposal Enticing Enough?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 21 2024
0mins
Should l Buy AEIS?
Source: Benzinga
- Acquisition Proposal: Advanced Energy Industries, Inc. disclosed a proposal to acquire XP Power Ltd. for £19.50 per share in cash, reflecting significant premiums.
- Total Consideration: The proposed consideration is £571 million based on share count, net debt, and no further dividends after the announcement.
- Previous Rejections: XP Power's Board had rejected three previous all-cash proposals from Advanced Energy before this latest offer.
- CEO Statement: Steve Kelley believes the offer will benefit both companies' shareholders by expanding product portfolios and technical capabilities.
- Financials and Stock Performance: As of March 31, 2024, Advanced Energy had $1.02 billion in cash equivalents, and its shares closed higher by 2.13% at $107.88 on Monday. Investors can access the stock through specific ETFs.
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Analyst Views on AEIS
Wall Street analysts forecast AEIS stock price to fall
8 Analyst Rating
6 Buy
2 Hold
0 Sell
Strong Buy
Current: 312.950
Low
225.00
Averages
283.75
High
310.00
Current: 312.950
Low
225.00
Averages
283.75
High
310.00
About AEIS
Advanced Energy Industries, Inc. provides engineered, critical, precision power conversion, measurement, and control solutions to its customers. The Company designs, manufactures, sells, and supports precision power products that transform, refine, and modify the raw electrical power coming from either the utility or the building facility and convert it into various types of controllable, usable power that is predictable, repeatable, and customizable to meet the necessary requirements for powering a range of complex equipment. The Company's precision power products and solutions are designed to enable new process technologies, improve productivity, and provide critical power capabilities for its customers. Its support services include warranty and non-warranty repair services, calibration, upgrades, and refurbishments of its products. The Company’s products are sold in the Semiconductor Equipment, Industrial and Medical, Data Center Computing, and Telecom and Networking markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Semiconductor Recovery: Semiconductor solutions experienced an 8% quarter-over-quarter growth, despite a 7% year-over-year decline, with management noting that the momentum from Q4 has carried into the current quarter, and customer demand is expected to rise in the second half of the year.
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See More
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- Stock Surge: Diodes shares jumped 31.8% to $81.32 on Wednesday, reflecting a positive market reaction to its earnings report, which may attract more investor interest.
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See More
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- Strong Sales Performance: The company achieved quarterly sales of $489.4 million, surpassing the analyst estimate of $473.079 million, reflecting its competitive position and sustained demand for its products.
- Positive Guidance: Advanced Energy expects first-quarter adjusted EPS between $1.69 and $2.19, above the market estimate of $1.64, with sales projected between $480 million and $520 million, showcasing confidence in future performance.
- Analyst Target Increases: Following the earnings announcement, several analysts raised their price targets for Advanced Energy, with Needham increasing from $290 to $330 and Susquehanna from $300 to $375, reflecting a bullish sentiment in the market towards the stock.
See More
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- Virtual Conference Participation: The company will also attend the Susquehanna Technology Conference in New York on February 27, 2026, leveraging a virtual platform to expand its investor base and enhance market visibility.
- Tech and Media Conference: On March 4, 2026, Advanced Energy will present at the Morgan Stanley Technology, Media & Telecom Conference in San Francisco, further demonstrating its innovative capabilities in mission-critical applications.
- Live Streaming and Replay: The company will present at the Cantor Global Technology & Industrial Growth Conference on March 10, 2026, with the event streamed live and available for replay on its website, enhancing interaction and transparency with investors.
See More
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- Record Gross Margin: The gross margin for Q4 reached 39.7%, up 60 basis points sequentially, while the operating margin stood at 17.8%, marking the company's best performance in five years, which is expected to further enhance future profitability.
- Data Center Business Thrives: Data center computing revenue surged 107% year-over-year to $587 million, with projections for over 30% growth in 2026, reflecting robust demand in AI and high-performance computing sectors.
- Strategic Investment and Expansion: The company's operational expansions in the Philippines and Mexico, along with the fit-up of the Thailand factory, are expected to generate over $1 billion in annual revenue capacity, further solidifying its market position and supporting future growth.
See More
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- Significant Revenue Growth: The quarter's revenue reached $489 million, up 17.7% year-over-year, surpassing market expectations by $15.07 million, reflecting the company's increasing competitiveness and potential for future returns.
- Strong Data Center Performance: Data center computing revenue surged 107% to a record level, showcasing the company's strong performance in the rapidly growing data center market, which may lay the groundwork for future expansion.
- Record Cash Flow: Cash flow from continuing operations hit a record $235 million, demonstrating significant improvements in operational efficiency and profitability, providing ample funding for future investments and growth initiatives.
See More
