Boston, MA 06/10/2014 (wallstreetpr) – Semiconductor components maker ON Semiconductor Corp (NASDAQ:ONNN) struck a definitive deal with Aptina Imaging to buy the company. ON Semiconductor will use its existing cash and revolving credit facility to fund the acquisition, which will help it accelerate industrial and automotive end-markets.
Acquisition of Aptina Imaging
ON Semiconductor Corp (NASDAQ:ONNN) will pay $400 million in cash to buy Aptina Imaging that will allow it expand vastly its image-sensor business apart from establishing its leadership position in the industrial and automotive market’s image sensor segment? The deal is estimated to be accretive to its earnings immediately, excluding any charges associated in connection with the acquisition. The companies expect the deal to be completed by the third quarter.
The semiconductor component maker made its tactical move to meet the increasing demand from global industrial and automotive applications for image sensors that is predicted to see an uptick at an annual compound rate of 16% until 2016 based on an independent research firm TSR finding.
Aptina Imaging generated revenue of about $532 million in the last one year period of up to May 29 based on its unaudited results. The company realized gross and operating margins of about 29% and 3% respectively. After taking over the company, ON Semiconductor Corp (NASDAQ:ONNN) plans to report Aptina Imaging results separately.
Apart from industrial and automotive, Aptina Imaging also serves products such as mobile devices, cameras, gaming, and computing platforms.
Management Speaks
ON Semiconductor Corp (NASDAQ:ONNN) president and CEO Keith Jackson said that Aptina Imaging acquisition would allow them to speed up its growth in the lucrative end markets of industrial and automotive through the deployment of differentiated imaging technologies in tune with sales and operational capabilities.
Expressing the opinion that the deal presents both companies exciting growth opportunities, the CEO said that Aptina would extend its capabilities and scale in image sensors; besides establishing it as a leader in this space. Since the company considers them as important strategic areas to focus for its future growth opportunities.
