International Rectifier (IRF) and Vishay Intertechnology (VSH) have finally settled their long-standing dispute. International Rectifier refunded $30 million in lieu of money paid by Vishay for the acquisition of its Power Control Systems (PCS) business.
It was also made to license some additional technology to Vishay that was developed subsequent to the closure of the deal. IRF was able to eke out one small advantage. The “not-to-compete” clause in the agreement was amended in its favor. Accordingly, subject to certain specified conditions, IRF is now able to develop, design, manufacture and sell products that are based on technologies already sold or licensed to Vishay.
The sale was completed in April 2007 for $290 million. A year later, VSH wrote down the newly acquired automotive modules and subsystems business (part of the deal) by $32.3 million. It also claimed damages from IRF regarding allegedly false forecasts provided by the latter. IRF expects to book a gain of more than $85 million in the fiscal fourth quarter, as the gain on sale of the PCS business is finally realized.
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