Power IC maker Magnachip Semiconductor Corp. has entered into a definitive agreement to be acquired by Wise Road Capital LTD.
Following the closing of the transaction, the South Korean chip company’s management team and employees are expected to continue their roles and Magnachip will remain based in Cheongju, Seoul, and Gumi, South Korea.
Wise Road intends to work with Magnachip to purse the next step in growing its global display and power markets. Additionally, the equity firm will help grow the company internationally.
"This transaction is in the best interests of all of our stakeholders, including shareholders, customers and employees. It will provide an excellent opportunity to accelerate our MX 3.0 growth strategy,” said YJ Kim, CEO of Magnachip. “Given their deep industry expertise, Wise Road Capital is an ideal partner for Magnachip, and we look forward to working with them as we chart the next phase for our company. We remain grateful to our customers for their trust and to our fellow employees for their unwavering commitment to delivering industry-leading products to customers worldwide."
The transaction is expected to close in the second half of 2021 and is subject to customary closing conditions.
