Private equity giant Advent International has made a cash offer (made through ZI Zenith S.à r.l., an indirect European subsidiary of Advent-managed funds) to acquire U-blox Holding AG, a Swiss semiconductor company specializing in positioning technology, in a deal valued at about 1.05 billion Swiss francs ($1.3 billion).
Advent’s proposal of 135 Swiss francs ($167 USD) per share represents a 53% premium over U-blox’s six-month volume-weighted average. However, the offer falls slightly below the chipmaker’s latest closing price of 138.60 francs on Friday. News of the potential transaction, first reported by Bloomberg, sent U-blox shares soaring nearly 25% on Friday, marking their sharpest one-day gain since August 2022. The stock has surged almost 90% so far this year.
According to Advent, the acceptance period for the offer is expected to last 21 days, closing around October 29.
The bid underscores a wave of private equity interest in European technology and healthcare firms perceived as undervalued. Recent deals include Nordic Capital and Permira’s pursuit of Danish vaccine manufacturer Bavarian Nordic. For Advent, U-blox would mark another addition to its growing portfolio of European assets, following acquisitions involving measurement company Spectris Plc and Italian software provider Tinexta SpA.
U-blox develops chips and modules that power satellite positioning in cars, drones, and consumer devices. The company recently exited its unprofitable cellular unit, pivoting toward faster-growing areas such as autonomous driving and mobile robotics.
Chief Executive Stephan Zizalads has highlighted the shift as a strategic refocus on sectors where U-blox’s positioning technology could play a critical role in the coming wave of automation.
If successful, Advent’s offer would hand the buyout firm control of one of Switzerland’s key players in semiconductor design, at a time when global demand for precision positioning and navigation tools is rising sharply.
