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ON Semiconductor buys AMIS in $915 million all-stock deal |
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Dec 13, 2007 at 04:33 PM |
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 ON Semiconductor has said it plans to acquire AMI Semiconductor in an all-stock transaction with an equity value of approximately $915 million. Combined, the companies have revenues of over $2 billion, making the company a significant player in the analog and power semiconductor market. Both boards of directors have approved the deal.
“The acquisition of AMIS furthers the transformation of ON Semiconductor into an analog and power solutions leader with enhanced scale, higher value and higher margin products, deep customer relationships and an expanded addressable market,” said Keith Jackson, ON Semiconductor President and CEO. “Combining ON Semiconductor’s leading standard products and advanced manufacturing infrastructure with AMIS’s growing standard products business and substantial custom product portfolio will enable the combined company to more comprehensively address our customers’ needs.”
“In addition to the strategic benefits, the acquisition provides compelling financial opportunities,” said Donald Colvin, ON Semiconductor Executive Vice President, CFO and Treasurer. “We have identified significant operational and manufacturing cost synergies, up to $50 million in pre tax savings in 2009 that may be achieved through the integration of AMIS and rationalization of our combined infrastructure. We expect to begin to realize these synergies within two quarters of closing the transaction. With these cost savings, and excluding the impact of amortization expense, we expect the acquisition will be accretive to our earnings per share exiting 2008.”
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