Infineon Technologies AG will buy International Rectifier Corp. under a definitive agreement announced Aug. 20. The acquisition combines two semiconductor companies with leadership positions in power-management technology. The companies say in a joint press release that IR's expertise in low-power, energy-efficient IGBTs (integrated-gate bipolar transistors) and intelligent power modules, power MOSFETs (metal-oxide-semiconductor field-effect transistors), and digital power management ICs (integrated circuits) will integrate well with Infineon’s offering in power devices and modules. With IR, Infineon acquires an advanced manufacturer in gallium nitride on silicon (GaN) based power semiconductors. This combination will accelerate and solidify Infineon’s position in GaN discretes and GaN system solutions, improving its ability to pursue this strategically important technology platform with significant future growth potential, according to the release. Infineon will pay $40 per share in cash for all of IR’s outstanding shares, representing a fully diluted enterprise value of approximately $ 2.4 billion.