Phoenix-based ON Semiconductor (ON) bought Amis Holdings, Inc. in an all stock deal for $915 million. The deal was announced on December 14, 2007. Amis Holdings is the parent of Ami Semiconductors based in Pocatello, Idaho with 2,500 employees. ON’s stock fell upon the announcement that 104 million shares would be issued to make the purchase. The stockholders apparently believe that the transaction will dilute their interest. Keith Jackson, CEO of ON told the Arizona Republic that it strengthens its position in the automotive industry and adds customers in the medical and aerospace fields.
Analysts seem to think that it’s a good move. Will Straus, principal analyst for Forward Concepts based in Tempe said,“ON has been known as a maker of single transistor chips and this moves them into integrated circuits with multiple transistors.”
ON was a division of Motorola until it was sold it to an investor group in 1999. The company has 11,000 employees with 1,000 in Phoenix and $1.5 billion in sales. This latest purchase will add another $500 million in sales. ON also made another purchase in November 2007. ON bought the voltage regulation and heat monitoring chip business from Analog Devices for $185 million in cash..
John Laub is the Founder of the CEO-CFO Group.
1. “ON Semi Acquires Idaho Competitor.” Max Jarman. The Arizona Republic. December 14, 2007.
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