- The acquisition builds an ideal platform that could be used by ON for addressing the connectivity application demands of automotive as well as industrial markets.
- The deal merges ON’s expertise in Bluetooth technologies & power management with Quantenna’s extensive capabilities in software & Wi-Fi.
ON Semiconductor (ON), an Arizona-based semiconductor manufacturing firm, has reportedly signed a definitive agreement to acquire San Jose-based Quantenna Communications (Quantenna) through an all-cash transaction.
Reports cite, the proposed acquisition would build an ideal platform for ON, who could leverage it to address the connectivity application demands of automotive as well as industrial markets. The deal also substantially enhances ON’s existing connectivity portfolio by integrating Quantenna’s extensive capabilities in software & Wi-Fi technology with ON’s expertise in Bluetooth technologies & power management.
According to a press release by ON Semiconductors, ON would be paying Quantenna approximately $24.50 for each of the company shares. The deal consideration represents an approximate enterprise value of $936 million and an equity value of more than $1.07 billion, after accounting for the company’s net cash which sat at approximately $136 million by the end of the fourth quarter (Q4) of 2018.
The President & Chief Executive Officer of ON Semiconductor, Keith Jackson stated that the company is thrilled to welcome Quantenna into the ON Semiconductor team. The acquisition is another step by ON towards the consolidation of its presence inside the industrial as well as automotive markets. Jackson further added that the company is thrilled about the opportunity that would be created by the acquisition for the shareholders, customers & employees of both enterprises.
The Chairman & CEO of Quantenna, Dr. Sam Heidari stated that through the acquisition, the company would be greatly benefiting from a premier-level organization in its commitment to facilitate the best end-user experience to its customers. Heidari further added that the company now looks forward to a hassle-free transition with ON Semiconductors.
Reportedly, the transaction would not be subject to financing condition & ON would be funding the deal through cash-on-hand & its revolving credit facility’ available capacity.