In an effort to boost future earnings in the application specific integrated passive (ASIP), especially the handset market, ON Semiconductor has made a bid to acquire California Micro Devices, valued at US$108 million. ON Semiconductor plans to purchase all of the outstanding shares of California Micro Devices common stock for US$4.70 per share in cash.
“The acquisition of California Micro Devices will significantly strengthen our offering of application specific integrated passive (ASIP) devices to protect products in the wireless, computing and consumer electronics end-markets,” said Keith Jackson, ON Semiconductor president and CEO. “Combined with ON Semiconductor's global sales channel footprint and effective channels of distribution, we expect to be able to support a broader and deeper penetration of CMD’s overall product portfolio with market-leading customers. This should enable us to accelerate revenue growth for CMD’s products and increase market share.”
“California Micro Devices becoming a part of ON Semiconductor represents a compelling opportunity for our customers, employees and shareholders,” said Robert Dickinson, President and CEO of CMD. “To compete successfully in today’s global marketplace, size and scale are very important so we are pleased to become part of a leading global company in the semiconductor sector.”
The companies expect the transaction to close in the first quarter of 2010.