ON Semiconductor Corp., Phoenix AZ, has signed a definitive agreement to purchase Sanyo Semiconductor Co., Ltd., Tokyo Japan, a subsidiary of SANYO Electric, and other assets related to SANYO Electric's semiconductor business.
In a cash and stock transaction with a purchase price of approximately USD$366-million, ON Semi enhances its manufacturing scale, broadens its product portfolio and expands its presence in the Japanese market.
Based on the most recently completed quarter, SANYO Semi's annualized revenue was approximately $1.2-billion and the annualized revenue of the combined entity would be approximately $3.5-billion. The acquisition is expected to be completed before the end of 2010.
"By combining these two highly complementary businesses, we will be better positioned to capture growth on a global scale. We believe the union of ON Semiconductor and SANYO Semiconductor will greatly enhance our presence in the automotive and consumer end-markets and significantly strengthen our geographic presence in the Asia-Pacific region," says Keith Jackson, president and CEO of ON Semiconductor.
"Strategically, this acquisition is expected to provide us with increased access to an important part of the global semiconductor market - the Japanese market, where SANYO Semiconductor has a more than 50 year operating history, and a longstanding presence at leading electronics manufacturers."
This acquisition will expand and strengthen ON Semiconductor's product portfolio, adding new capabilities ranging from microcontrollers and custom Application Specific Integrated Circuits (ASICs) to integrated power modules and motor control devices for the consumer, automotive and industrial end-markets.