US power conversion, measurement and control equipment developer Advanced Energy Industries has made a £571m ($725.4m) offer to acquire XP Power, a UK-based developer of power conversion equipment.

The bid, amounting to £19.50 per share in cash, follows three previous proposals and represents a significant premium over the current share price.

The first offer was made in October 2023, valuing the company at £339m. A second offer in November of the same year increased it to £369m.

The third offer was made in May 2024 and increased the valuation again, this time to £468m.

The acquisition proposal by Advanced Energy Industries is part of its strategic growth plan, aiming to enhance its precision power solutions across the industrial, medical and semiconductor sectors.

Despite the rejections of previous offers by XP Power's board, Advanced Energy remains committed to its approach to its acquisition.

Advanced Energy's strategy includes expanding its customised power conversion offerings to increase revenue.

The acquisition of XP Power, with its engineering capabilities and complementary product portfolio, is expected to bolster Advanced Energy's technology base and product range.

The potential acquisition would allow Advanced Energy to offer a more extensive array of products and technologies, particularly enhancing its embedded system power products for semiconductor equipment.

Advanced Energy president and CEO Steve Kelley stated: “We believe that the proposed offer for XP Power provides compelling value for both Advanced Energy’s and XP Power’s shareholders.

“By expanding our portfolio of products and technologies, and combining our technical capabilities, we believe we will be better able to meet the growing needs of our customers.”