14 DAY TRIAL // On Semiconductor has confirmed the rumors that alleged the company's taking over the AMIS Holdings business, for a fair amount of $915 million. Upon completion, the transaction is supposed to consolidate the ON Semi's position on both analog and power integrated circuitry producers market.
"Combining On Semiconductor's leading standard products and advanced manufacturing infrastructure with AMIS's growing standard products business and substantial custom product portfolio will enable the combined company to more comprehensively address our customers' needs", said Keith Jackson, On Semiconductor president and CEO. "AMIS will immediately contribute exciting new products and capabilities in the medical and military/aerospace markets and will complement our existing automotive and industrial businesses", Jackson continued.
The two companies have a cumulative yearly income of over $2 billion, with an amortization of more than $500 million. The sales agreement has been approved by the board of directors in both parts and stipulates that the AMIS shareholders will receive 1.150 shares of On Semiconductor common stock for each share of AMIS common stock they own. When the transaction has reached completion, the company will issue 104 million shares of common stock on a fully diluted basis to mark the end of the transaction.
"This transaction represents a compelling opportunity for AMIS employees, customers and shareholders by combining the outstanding manufacturing excellence of On Semiconductor with the world class mixed-signal design talent of AMIS", stated Christine King, CEO of AMIS, in the same statement. "We believe AMIS shareholders will not only benefit from the initial premium represented by the purchase price, but also from a significant post-merger ownership in a combined ON Semiconductor/AMIS company that is expected to have enhanced growth, cash flow and profitability prospects."
After the two companies merge, ON Semiconductor president and CEO Keith Jackson will extend control over the ex-AMI division, but the latter company headquarters will remain in Phoenix, Arizona.