ON Semiconductor to acquire California Micro Devices for $108 million
14 Dec 2009
ON Semiconductor Corporation, a supplier of high performance silicon solutions has agreed today to acquire California Micro Devices (CMD) for $108 million to strengthen its portfolio of application specific integrated passive (ASIP) devices.
The Phoenix, Arizona-based ON Semiconductor, with 2008 revenue of $2.055 billion will acquire CMD, a leading supplier of protection devices for the mobile handset, high brightness LED (HBLED), digital consumer electronics and personal computer markets, through a cash tender offer of $4.70 per share.
The transaction value of CMD represents an enterprise value of approximately $63 million and an equity value of approximately $108 million, based on common stock outstanding and issued.
''The acquisition of CMD 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.
''In addition, CMD's expertise in protection solutions for the high brightness LED (HBLED) market, as well as their strengths in LC-based EMI (electromagnetic interference) filtering and low capacitance ESD (electrostatic discharge) protection, complement our existing portfolio of protection and lighting solutions, he added.
After having recovered from a failed and embarrassing hostile bid with Microchip Technology Inc. to buy Atmel Corp for $2.3 billion in October 2008, (See: ON Semiconductor, Microchip withdraw hostile bid for Atmel), ON Semiconductor ended the third quarter with the highest level of cash and lowest net debt position in its history.
ON Semiconductor is a supplier of high performance, energy efficient and cost-effective, silicon solutions for electronics in the computing, communications, consumer, automotive, industrial, medical and military/aerospace markets.
The company's portfolio includes power management, signal, logic, discrete and custom devices. The company operates a network of manufacturing facilities, sales offices, and design centres in key markets throughout North America, Europe, and the Asia Pacific regions.
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