ON Semi (ONNN) is buying Aptina Imaging, a leading automotive/industrial image sensor vendor, for $400M in cash. The deal is expected to close in Q3.
ON will pay for Aptina using cash on hand and an existing credit facility. The chipmaker had $617M in cash/investments as of March 28, and $950M in debt.
Aptina had revenue of $532M over the 12 months ending May 29 - that means ON is paying only 0.75x sales. Gross margin was 29%, and op. margin just 3%. Rivals include OmniVision and Sony.
ON expects the deal to be immediately accretive. The company bought specialty image sensor firm Truesense for $92M in April.