ON Semiconductor, ON Semiconductor
ON Wednesday,the company announced ON Wednesday that it would acquire Fairchild Semiconductor International for$2.4 billion in cash.It is the latest in a rapidly consolidating semiconductor industry.
Under the terms of the deal,ansen will pay$20 per share,a premium of nearly 12 per cent on Tuesday's closing price.The combined company's annual revenue is about$5 billion.
With numerous technology companies seeking product portfolio diversification,and meet the market demand for cheap chip,the global semiconductor industry is unleashed a wave of mergers and acquisitions,mergers and acquisitions so far this year,total more than$100 billion.
The deal is expected to close in the second quarter of next year.Ansen said the deal would help it expand its power semiconductor business.
After the merger,the two companies will become the leader of semiconductor power devices,and the new company's product line covers both breadth and depth.
The two companies'product lines are highly complementary and will cover high-voltage,medium-voltage and low-pressure markets for power semiconductor devices.
The strength of anson's strategic direction in industrial electronics,automotive electronics and smart phone terminal markets will be enhanced in the future.
Earnings per share and free cash flow will be increased immediately by non-gaap.
The deal,which will be completed in 18 months,is expected to save$150 million a year in operating costs.
"The merger of anson and fairchild makes the leader of a power semiconductor device,and the new company will be more able to face the merger wave in the semiconductor industry.Our plan is to through the integration of the two are complementary product line,provide consumers with high voltage,medium voltage to low voltage across the product solutions,"various semiconductor,President and chief executive Keith Jackson said,"manufacturing and all the shareholders will also benefit from the acquisition,anson earnings per share will be immediately thickening of beauty,free cash flow also will have the opportunity to get a boost."
"As part of the semiconductor manufacturing,fairchild power technology will continue to lead the development,through the design innovation to satisfy the needs of consumers in terms of efficient use of energy,to create value for our global partners and employees,"fairchild semiconductor,chairman and chief executive Mark Thompson said,"we will closely cooperate with manufacturing,in order to ensure a smooth integration between the two sides can finish."
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