On Semiconductor Corp. agreed to buy certain voltage regulation and thermal monitoring assets from Analog Devices Inc. for $185 million in cash, it said Thursday, Nov. 8. Terms also call for a one-year manufacturing supply arrangement.
Phoenix-based On said the assets being acquired generated revenue of
about $80 million in the 12 months ended in November. It added,
however, that one of its key reasons for buying the assets was the
technical acumen of the Analog Devices staff.
"The technical expertise of the staff is a critical aspect of this
transaction," Keith Jackson, On Semiconductor president and CEO, said
in a statement. "This additional talent will help On Semiconductor
expand its overall computing power management business and accelerates
our notebook power management revenue growth. Along with the products
and technology, this team complements On Semiconductor's existing
Computing Products Group and will provide increased value-add and scale
to our customers."
On Semiconductor will also acquire several patents Analog Devices
issued along with patent applications related exclusively to the target
businesses. The company said it expects the acquisition will close in
December.
Analog Devices of Norwood, Mass., has been working to concentrate
more on its core chip businesses. In September it sold several product
lines to Taiwanese chipmaker MediaTek Inc. for $350 million.
