ON Semiconductor completes acquisition of CPU voltage and PC thermal monitoring business from Analog
ON Semiconductor said that it signed a definitive agreement to acquire these product lines from ADI. The total consideration value paid of approximately US$184 million in cash includes the purchase price for the acquired assets and intellectual property rights related to the product lines as well as amounts payable under a one-year manufacturing supply arrangement with ADI.
"The customers and products associated with the computing end-market are a critical component to our ongoing success and strategy," said Keith Jackson, ON Semiconductor president and CEO. "The technical expertise, customer relationships and power management know-how of the ADI team expands our overall computing power management business and accelerates our notebook power management revenue."
After paying cash for this transaction, the company expects its cash and cash equivalents balance will exceed US$250 million exiting 2007. It has been reported that ON Semiconductor will begin recognising revenue associated with the acquired business beginning in the first quarter of 2008. The company also anticipates minimal non-cash acquisition related charges associated with the transaction in the fourth quarter ending 31 December 2007 and approximately US$2 million in non-cash amortisation of intangible charges associated with the acquisition in the first quarter of 2008.
ON currently anticipates reporting fourth quarter and 2007 annual results on 31 January 2008 at which time it will provide first quarter 2008 guidance that will include the results of the acquired business. The company also intends to report U.S. GAAP and non-GAAP earnings per share, which will exclude certain non-cash related charges beginning in the fourth quarter of 2007.
