Filing Flows › Power Integrations (POWI) › Takeover & LBO
Is Power Integrations (POWI) a takeover target?
A leveraged buyout at today's price plus 30% ($61.24 a share) would return a loss of about 4% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 5.0% of companies with its figures were bought within a year (0.99× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $61.24 | today's $47.11 plus 30% |
| × shares | 56.7 million | |
| = Equity value | $3.5B | |
| + Debt refinanced | $0 | |
| − Cash | $263M | |
| = Enterprise value | $3.2B | 78.8× EBITDA of $40.7M |
| Fees | $64.2M | 2% of the price |
| New debt | $224M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $3.0B | 93% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $453M | $41.4M | $17.1M | $4.2M | $220M |
| Year 2 | $462M | $42.2M | $16.8M | $4.8M | $215M |
| Year 3 | $472M | $43.1M | $16.5M | $5.5M | $210M |
| Year 4 | $485M | $44.3M | $16.0M | $6.2M | $203M |
| Year 5 | $500M | $45.6M | $15.6M | $7.1M | $196M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 59.1× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $2.7B | |
| − Debt left | $196M | |
| = Buyer's equity | $2.5B | |
| Money multiple | 0.82× | on $3.0B put in |
| Buyer's yearly return (IRR) | −3.9% |
Price against return
What the buyer makes at other premiums over today's $47.11.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $51.82 | 0.0% |
| 20% | $56.53 | −2.1% |
| 30% | $61.24 | −3.9% |
| 40% | $65.95 | −5.5% |
| 50% | $70.66 | −7.0% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $446M | |
| EBITDA, last 12 months | $40.7M | 9.1% of revenue |
| Depreciation and amortization | $25.6M | |
| Capital spending | $19.0M | |
| Debt | $0 | |
| Cash | $263M | |
| Share price | $47.11 | on Oct 12, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 1.6% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 12% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Power Integrations would cost about $61.24 a share, $3.5B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $52.76 | $3.0B |
| Median | 30% | $61.24 | $3.5B |
| High end (a quarter paid more) | 31% | $61.71 | $3.5B |
The odds, from history
Historically 5.0% of companies with its figures were bought within a year (0.99× the average). Its figures put it in decile 6 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
Power Integrations' latest quarter
Power Integrations, Q3 2026: revenue $125M (+6% year over year), operating margin 15.2%, net earnings $18.3M, operating cash flow $42.6M. The chart follows the revenue to costs, profit and cash.
Questions
Is Power Integrations being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Power Integrations?
A leveraged buyout at today's price plus 30% ($61.24 a share) would return a loss of about 4% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Power Integrations cost?
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Power Integrations would cost about $61.24 a share, $3.5B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.