4 March 2020
Transphorm raises $21m and completes reverse merger
Transphorm Inc of Goleta, near Santa Barbara, CA, USA — which designs and manufactures JEDEC- and AEC-Q101-qualified 650V gallium nitride (GaN) field-effect transistors (FETs) for high-voltage power conversion applications — has raised $21.5m in a private placement equity financing. Prior to the financing, Transphorm Technology Inc completed a reverse merger with Peninsula Acquisition Corp (a public Delaware corporation) whereby Transphorm became a wholly owned subsidiary of Peninsula. Following the merger, Peninsula changed its name to Transphorm Inc and will continue the historical business of Transphorm. Previous members of Transphorm’s board David Kerko, Eiji Yatagawa, Brittany Bagley, Mario Rivas and Dr Umesh Mishra will remain as directors.
Transphorm has developed, and is in the market with, multiple families of products that are the building blocks for an array of power converter and inverter systems. The firm’s GaN products switch faster than traditional silicon-based solutions and provide higher efficiency with increased system power density while enabling system size reduction.
Transphorm says that it has begun to see meaningful customer adoption of its GaN products in power adapters/fast chargers, power supplies for data centers, communication infrastructure and broad industrial applications, and that it continues to see heightened interest from automotive electric vehicle (EV) suppliers for chargers, converters and inverters. This is in-line with the ongoing overall adoption of GaN solutions in power conversion applications which, according to the firm’s analysis, amounts to an accessible total available market (TAM) for GaN of about $3.1bn in 2024. Factoring in GaN market adoption rates, market research firm Yole Développement predicts robust growth and that GaN power device revenues may approach $400m by 2023.
The new equity financing will “support and accelerate our product development, manufacturing, and sales for our GaN power solutions,” says CEO Mario Rivas. “The success of this financing demonstrates confidence and support in Transphorm’s team, technology and products by both our current partners as well as our new investors,” he believes.
“Our core capabilities in GaN epitaxy, design, process and circuit applications have positioned us well to innovate and address the power conversion systems needs of our customers,” reckons co-founder & chief operating officer Dr Primit Parikh. “We have created an integrated device model [including design, fabrication, device and application support] and developed highly reliable, high-performance GaN device technology, as well as amassed one of the largest intellectual property portfolios in the GaN power industry,” he adds.
The financing was led by existing investors including an affiliate of Kohlberg Kravis Roberts & Co L.P. (KKR), a new strategic investor Marelli and new prominent institutional investors. B. Riley FBR Inc (member FINRA/SIPC) was the lead placement agent and Craig-Hallum Capital Group LLC was the co-placement agent. Montrose Capital Partners was the sponsor for the transaction.