Electronics Production | June 09, 2010
ON Semi acquires Sound Design Technologies
ON Semi has acquired privately held Sound Design Technologies from an affiliate of Global Equity Capital, LLC, in an all cash transaction for initial consideration of approximately USD 22 million.
Under the terms of the acquisition, the seller will also have the ability to receive additional earn-out proceeds of up to USD 10 million if, among other things, SDT is able to meet certain revenue thresholds in 2010, 2011 and 2012. The initial consideration value represents approximately one times SDT’s first quarter 2010 annualized sales levels. SDT will now become an integrated part of ON Semiconductor’s Medical Division, based in Waterloo, Ontario, Canada. “The acquisition of Sound Design Technologies solidifies our position as a leading supplier of ultra-low-power digital signal processing (DSP) technology for hearing aids and audio processing applications,” said Robert Tong, vice president of ON Semiconductor’s Medical Division. Michael Hirano, executive vice president, operations of Global Equity Capital, stated, “Matching SDT’s cutting edge technology with ON Semiconductor’s worldwide presence and industry expertise is a natural next step in the evolution of the business, also benefiting SDT customers building sophisticated hearing products.”