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© rasa messina francesca dreamstime.com Business | November 18, 2015

Semiconductor madness: On Semi buys Fairchild

ON Semiconductor and Fairchild Semiconductor have entered into a definitive agreement for ON Semiconductor to acquire Fairchild for USD 20.00 per share in an all cash transaction valued at approximately USD 2.4 billion.
The transaction will create a power house in the power semiconductor market with combined revenue of approximately USD 5 billion, 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,” said 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,” stated 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.”

The transaction has been unanimously approved by ON Semiconductor’s and Fairchild’s boards of directors and is expected to close late in the second quarter of 2016.
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