Schneider Electric is acquiring the solid-state relay (SSR) manufacturer Crydom from its US parent, Silicon Power, for $71m. Schneider says that the Crydom products, combined with its own Crouzet SSR portfolio, will make it joint global leader in this technology.

Crydom already leads the US SSR market (where it generates 60% of its sales). It is expected to produce a profit close to $8m on sales of $30m this year.

Schneider says it is attracted by the SSR market`s average annual growth rate of more than 5%, and by Crydom`s strategic fit with its own position as a leader in the global contactor market. It expects to "extract synergies" from the Crydom and Crouzet SSR activities. The transaction is expected to be finalised in the first quarter of 2006.

Schneider expects the acquisition to meet its financial criterion of producing a return-on-capital-employed of around 10% within three years of completion.