ON Semiconductor Corporation and SANYO Electric Co., Ltd. recently announced the signing of purchase agreement. The purchase price was agreed at $366m (¥33bn) in a cash and stock transaction, which is subject to adjustment pursuant to the terms of the transaction.

Based on SANYO Semiconductor’s most recent quarter results, the annualised revenue was approximately $1.2bn, meaning that the annualised revenue of the combined entity would equate to around $3.5bn. The acquisition is expected to be complete by the end of 2010.

Keith Jackson, President and CEO of ON Semiconductor, stated, “The pending acquisition of SANYO Semiconductor is another significant step by ON Semiconductor to solidify its position as a premier global supplier of high-performance, energy efficient silicon solutions with increased manufacturing scale and an expanded addressable market. By combining these two highly complementary businesses, we will be better positioned to capture growth on a global scale.”

Meanwhile, Teruo Tabata, President of SANYO Semiconductor, responded, “There will be no change in the strategy as far as technology is concerned, as both companies specialize in analog technology. Instead, following the acquisition by ON Semiconductor, new opportunities to introduce both companies' existing products in our newly combined markets will be available. We can also expect to expand the consumer base and further grow the business by offering complementary products and services to each other. In addition, we can expect further business development by strengthening product competitiveness through ON Semiconductor's superior cost control measures in a value-added supply chain.$quot;