DENVER - Advanced Energy Industries, Inc. (NASDAQ:AEIS), known for its precision power conversion solutions, announced today the acquisition of Airity Technologies, a firm specializing in high voltage power conversion technologies. This move aims to enhance Advanced Energy's offerings in the semiconductor, industrial, and medical markets.
Airity Technologies, based in Redwood (NYSE:RWT) City, California, brings to Advanced Energy a portfolio of Gallium Nitride (GaN) based technologies that promise to improve power density and response times in power conversion and pulsing applications. The integration of Airity's technologies is expected to allow Advanced Energy to cater to a broader spectrum of applications within its target markets.
Steve Kelley, Advanced Energy’s president and CEO, remarked on the strategic fit of the acquisition, noting the potential to accelerate innovation within the precision power conversion market. He also highlighted the past year of collaboration between the two companies and welcomed the Airity team to Advanced Energy.
The financial terms of the acquisition have not been disclosed, and the company has indicated that the impact on Advanced Energy's financial forecasts for 2024 is expected to be immaterial.
Advanced Energy has a global presence in the design and manufacture of engineered power conversion solutions. Their products support a variety of critical applications and processes in industries such as semiconductor equipment, industrial production, medical and life sciences, as well as data center computing and telecommunications.
The acquisition is part of Advanced Energy's ongoing efforts to expand its technology leadership and support customer innovation through advanced power solutions. The company, headquartered in Denver, Colorado, has dedicated four decades to perfecting power conversion technologies, emphasizing precision, performance, and trust.
The information in this article is based on a press release.
In other recent news, Advanced Energy Industries has seen an analyst upgrade from Citi, which raised the company's stock target from $107 to $113. This change was influenced by the company's sales and EPS figures for the March quarter, which fell short of their guidance by 6% and 17% respectively. However, the EPS forecast for the June quarter is slightly more optimistic, expecting a 1% improvement over consensus estimates.
Advanced Energy Industries revealed its first-quarter earnings for 2024, meeting its gross margin target. The company anticipates a stronger performance in upcoming quarters, driven by growth in various sectors including data center computing, semiconductor, industrial, and medical.
These recent developments provide insights into the current performance and future expectations of Advanced Energy Industries.
InvestingPro Insights
Advanced Energy Industries, Inc. (NASDAQ:AEIS) has taken a significant step with the acquisition of Airity Technologies, which is expected to complement its high-precision power conversion solutions. As investors consider the implications of this strategic move, they can look to various metrics and analyst insights for a deeper understanding of AEIS's financial health and market position.
One key metric to note is the company's P/E Ratio (Adjusted) for the last twelve months as of Q1 2024, which stands at 31.75. This suggests that AEIS is trading at a premium compared to some of its peers, reflecting a market expectation of future earnings growth or a strong current position in the market. Additionally, AEIS's Market Cap is currently at $4.09 billion USD, which underscores its significant size and influence within the precision power conversion sector.
From a profitability standpoint, AEIS has been successful over the last twelve months, as indicated by a Gross Profit Margin of 35.49%. This level of profitability, combined with a positive 1 Year Price Total Return of 4.42%, may offer reassurance to investors about the company's ability to generate value.
Looking at analyst insights from InvestingPro, AEIS is noted to be trading at a high earnings multiple, which aligns with its P/E Ratio data. Additionally, while analysts anticipate a sales decline in the current year, four analysts have revised their earnings upwards for the upcoming period, suggesting a potential offset to the anticipated revenue softness.
For investors seeking more comprehensive analysis, there are additional InvestingPro Tips available for AEIS, providing a fuller picture of the company's financial performance and market expectations. Subscribers can use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, accessing even more valuable insights for informed decision-making.
Advanced Energy's strategic acquisition of Airity Technologies seems to align with its broader market objectives and may position the company favorably in its target sectors. With a total of 12 additional InvestingPro Tips available, investors have ample data points and expert analysis to gauge the potential impact of this corporate action on AEIS's future growth and profitability.
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