(Adds deal details)
Nov 11 (Reuters) - Taiwanese electronic component company Yageo Corp plans to acquire U.S. rival Kemet Corp in a $1.8 billion deal aimed at expanding its global footprint, the two companies said.
Yageo will offer $27.20 per Kemet share, representing an 18% premium to Monday's closing share price.
"The integration will enhance our ability to serve customers in consumer electronics as well as in the high-end automotive, industrial, aerospace, telecom and medical sectors", Yageo Chief Executive Officer Pierre Chen said.
Yageo's global footprint would increase with additional operations in North America, Europe and Asia, the companies said in a joint statement.
The deal is expected to close in the second half of 2020 and would result in combined annual revenues of about $3 billion, the companies said.
It has been approved by the boards of both companies and is subject to customary closing conditions and regulatory approvals.
Yageo said it intends to fund the transaction with a combination of cash on hand and committed financing.
Citi served as financial adviser to Yageo and Simpson Thacher & Bartlett LLP and Tsar & Tsai Law Firm in Taiwan acted as legal advisors.
Goldman Sachs & Co LLC acted as financial adviser to Kemet and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisers. (Reporting by Dominic Roshan K.L. and Abhishek Manikandan in Bengaluru; editing by Richard Pullin)