ON Semiconductor To Buy SANYO Semiconductor In $366M Deal

Phoenix, Arizona-based ON Semiconductor said late Wednesday evening that it has agreed to acquire SANYO Semiconductor, a subsidiary of SANYO Electric, in a deal worth approximately $366M in cash and stock. ON Semiconductor said that SANYO Semiconductor had annual revenues of approximately $1.2 billion, creating a combined firm with annual revenues of $3.5 billion. ON said the buy would "solidify its position" ad a supplier of high performance, energy efficient silicon. The firm also said it expects to get "significant efficiency gains" by optimizing manufacturing, process technology platforms, and capital investments after the acquisition. The deal includes $129M in cash and $238M in ON Semiconductor's common stock.