ON Semiconductor to acquire Fairchild Semiconductor

In yet another major acquisition for the company, ON Semiconductor has entered into a definitive agreement with Fairchild Semiconductor International Inc. for ON Semiconductor to acquire Fairchild for $20.00 per share in an all cash transaction valued at approximately $2.4 billion.

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In yet another major acquisition for the company, ON Semiconductor has entered into a definitive agreement with Fairchild Semiconductor International Inc. for ON Semiconductor to acquire Fairchild for $20.00 per share in an all cash transaction valued at approximately $2.4 billion.

Founded in 1957, Fairchild Semiconductor is based in San Jose, CA, USA that develops such products as analog and mixed signal integrated circuits, automotive products, lighting integrated circuit, optoelectronics, and sensors for such markets as automotive, industrial automation, lighting, consumer goods, and wearable devices.

The move, according to ON Semiconductor, creates a leader in the power semiconductor market with combined revenue of approximately $5 billion, diversified across multiple markets with a strategic focus on automotive, industrial and smartphone end markets.

“The combination of ON Semiconductor and Fairchild creates a power semiconductor leader with strong capabilities in a rapidly consolidating semiconductor industry. Our plan is to bring together two companies with complementary product lines to offer customers the full spectrum of high, medium and low voltage products,” said Keith Jackson, president and chief executive officer of ON Semiconductor. “The immediate EPS accretion and potential to significantly augment ON Semiconductor’s free cash flow, make the Fairchild acquisition an excellent opportunity for ON Semiconductor stockholders.”

Mark Thompson, chairman and chief executive officer of Fairchild, also commented: "As part of ON Semiconductor, Fairchild will continue to pioneer technology and design innovation in efficient energy consumption to help our customers achieve success and drive value for our partners and employees around the world," he said “We look forward to working closely with the ON Semiconductor team to ensure a smooth transition."

Last year, ON Semiconductor made two major acquisitions, having acquired Aptina Imaging for approximately $400 million in August, and Truesense Imaging for $95 million in May. Both moves reflect an increased focus on image sensor. Following these acquisitions, ON Semiconductor created a fourth business unit dedicated specifically to image sensors.

"Machine vision continues to expand into new applications," Michael DeLuca, product marketing, Image Sensor Business Unit, ON Semiconductor told Vision Systems Design at the VISION Show in Stuttgart last year. "As technology expands, so does the need for automation and productivity, which creates new opportunities."

Pictured: ON Semiconductor’s latest PYTHON CMOS image sensor.

View an ON Semiconductor press release.

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