Austrian sensor firm ams has completed its acquisition of Osram finally, after securing additional finance and regulatory approval in Europe.
The deal, which sees ams take control of a company several times its own size, values the Munich-headquartered lighting and photonics technology group at more than €4 billion.
And it concludes an unlikely-looking struggle that began nearly a year ago, when ams first went public with its plan to trump the rival bid by a private equity consortium that Osram’s management had already recommended to shareholders.
Regulatory nod
ams had expected to complete the deal by June 30, but instead that date saw it announce a placement of loan notes worth more than €1 billion to help finance the acquisition.
Accruing interest at 6 per cent and 7 per cent respectively, proceeds from the two note placements were used alongside a €1.65 billion rights issue and a separate bridge loan of up to €4.4 billion to complete the deal.
Shortly after the latest finance was raised, the European Commission approved the Osram acquisition unconditionally, after concluding that it “would raise no competition concerns in the European Economic Area”.
Aside from finding that neither ams nor Osram held sufficiently large market power to cause concern, the commission noted that the typically rapid evolution of products in the optoelectronics sector and the sophisticated nature of product buyers would help maintain genuine competition.
European roots
Having received that clearance, ams was able to pay the offer price of €41 per share to holders of the Osram shares tendered for sale, raising its total shareholding from 23 per cent to 69 per cent.
“The European Union regulatory approval constituted the last remaining condition precedent for closing the transaction which is now fulfilled,” ams stated. “ams is excited about this success and looks forward to creating a worldwide leader in sensor solutions and photonics through the combination of ams and Osram.”
Alexander Everke, CEO of ams, added following completion of the deal: “Together we will be able to offer customers exciting new products and solutions driving innovation in optical technologies.
"Firmly rooted in Europe, we will leverage the strong technology, intellectual property, and market position of Osram in combination with ams and are convinced of our potential to become a world leader in the optical space.
