ON Semiconductor Corp. entered into a definitive agreement to acquire Fairchild Semiconductor International Inc. for $20 per share in an all cash transaction valued at approximately $2.4-billion. The acquisition 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,” says 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.”
“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,” states Mark Thompson, chairman and chief executive officer of Fairchild. “We look forward to working closely with the ON Semiconductor team to ensure a smooth transition.”