ON Semiconductor buys the legendary chip maker Fairchild for $ 2.4 billion
ON Semiconductor announced the takeover of one of the oldest American chip makers Fairchild Semiconductor International. From the statement of ON Semiconductor it follows that the company will pay Fairchild about $ 2.4 billion. The price per share was $ 20, which is 12% more than the exchange value of one Fairchild security at the close of the exchange on Tuesday, November 17. On Wednesday, before the start of trading, Fairchild shares were priced at $ 19.4 per share (as of 3:00 pm Moscow time).
The deal is scheduled to close in the second quarter of 2016.
Deutsche Bank and BofA Merrill Lynch act as financial consultants for ON Semiconductor, and Morrison & Foerster acts as legal advisor. Fairchild is advised by Goldman Sachs and Wachtell, Lipton and Rosen & Katz . ON Semiconductor expects to finance the transaction with its own funds and a new loan. In 2014, the company's revenue amounted to $ 3.6 billion.
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As a result of the transaction, the industry will receive a new leader in the segment of power semiconductor solutions with annual revenues of about $ 5 billion. The diversified proposal of the company will be divided into three strategic areas: automotive electronics, industrial electronics and smartphones.
A strong competitor to ON Semiconductor is the Chinese company Tsinghua , which is one of the three largest manufacturers in the industry. In the next five years, she will invest 300 billion yuan ($ 47 billion) in this area.
In August, Tsinghua Unigroup made an unofficial offer to buy American Micron Technology Inc. However, it was rejected. In general, over the past two years, the Chinese organization has spent more than $ 9.4 billion on investments and acquisitions, including the purchase of shares in the American Digital Digital Corp and Taiwan Powertech Technology Inc. An investment of $ 3.775 billion in Western Digital was recently announced.
Fairchild develops semiconductor solutions for power management in electronic devices, automotive chips and electronic signal converters. Founded in 1957, the company is considered one of the oldest chip manufacturers in the United States. In 1959, the American company for the first time in the world created an integrated circuit suitable for mass production, and was one of the key firms of Silicon Valley in the 1960s.
In 1979, the oilfield service company Schlumberger absorbed Fairchild Semiconductor. In 1987, National Semiconductor bought Fairchild Semiconductor from Schlumberger. Fairchild Semiconductor became an independent company again in 1997. Since 1999, the company has been trading on the New York Stock Exchange.
According to Thomson Reuters, this year the total amount of M & A transactions (mergers and acquisitions) in the semiconductor industry reached $ 80 billion. Experts believe that further consolidation will take place in the industry.
The deal is scheduled to close in the second quarter of 2016.
Deutsche Bank and BofA Merrill Lynch act as financial consultants for ON Semiconductor, and Morrison & Foerster acts as legal advisor. Fairchild is advised by Goldman Sachs and Wachtell, Lipton and Rosen & Katz . ON Semiconductor expects to finance the transaction with its own funds and a new loan. In 2014, the company's revenue amounted to $ 3.6 billion.
')
As a result of the transaction, the industry will receive a new leader in the segment of power semiconductor solutions with annual revenues of about $ 5 billion. The diversified proposal of the company will be divided into three strategic areas: automotive electronics, industrial electronics and smartphones.
A strong competitor to ON Semiconductor is the Chinese company Tsinghua , which is one of the three largest manufacturers in the industry. In the next five years, she will invest 300 billion yuan ($ 47 billion) in this area.
In August, Tsinghua Unigroup made an unofficial offer to buy American Micron Technology Inc. However, it was rejected. In general, over the past two years, the Chinese organization has spent more than $ 9.4 billion on investments and acquisitions, including the purchase of shares in the American Digital Digital Corp and Taiwan Powertech Technology Inc. An investment of $ 3.775 billion in Western Digital was recently announced.
Fairchild develops semiconductor solutions for power management in electronic devices, automotive chips and electronic signal converters. Founded in 1957, the company is considered one of the oldest chip manufacturers in the United States. In 1959, the American company for the first time in the world created an integrated circuit suitable for mass production, and was one of the key firms of Silicon Valley in the 1960s.
In 1979, the oilfield service company Schlumberger absorbed Fairchild Semiconductor. In 1987, National Semiconductor bought Fairchild Semiconductor from Schlumberger. Fairchild Semiconductor became an independent company again in 1997. Since 1999, the company has been trading on the New York Stock Exchange.
According to Thomson Reuters, this year the total amount of M & A transactions (mergers and acquisitions) in the semiconductor industry reached $ 80 billion. Experts believe that further consolidation will take place in the industry.
Source: https://habr.com/ru/post/296506/
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