Wednesday, July 1, 2009

International Rectifier 8K - Announces Settlement with Vishay Intertechnology, Inc.

EL SEGUNDO, California.—(BUSINESS WIRE) — July 1, 2009 — International Rectifier Corporation (NYSE:IRF) and Vishay Intertechnology, Inc. (NYSE:VSH) today announced that they have entered into a settlement agreement to resolve certain disputes related to Vishay’s acquisition in 2007 of International Rectifier’s Power Control Systems (“PCS”) business. Under the settlement, International Rectifier has refunded $30.0 million of the purchase price associated with the acquisition, and Vishay has released International Rectifier from claims related to certain outstanding disputes regarding the acquisition. In addition, Vishay and International Rectifier clarified and revised the covenant not-to-compete associated with the acquisition to permit International Rectifier to develop, design, manufacture, and sell under certain conditions additional products that incorporate technologies sold or licensed to Vishay in the acquisition. International Rectifier also granted to Vishay a license to certain additional technology developed in the future by International Rectifier.

International Rectifier expects to report a pretax gain for the fourth fiscal quarter ending June 28, 2009 in excess of $85 million due to recognition of the gain on the sale of the PCS business that had been deferred due to the previous uncertainties now resolved in the settlement.

International Rectifier completed the sale of the PCS business to Vishay Intertechnology, Inc. on April 1, 2007.