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ON Semiconductor Corp. (ONNN) Completes Strategic Acquisition of SANYO Electric Subsidiary

|Includes: ON Semiconductor Corporation (ON)

ON Semiconductor Corp. today announced it has completed its $144 million acquisition of SANYO Semiconductor Co., Ltd., a subsidiary of SANYO Electric, including assets related to SANYO Electric’s semiconductor business.

The acquisition adds meat to ON Semiconductor’s product portfolio with the addition of new capabilities for the consumer, automotive and industrial end-markets.

Keith Jackson, president and CEO of ON Semiconductor, said the deal reflects ON Semiconductor’s broader efforts to expand its market reach, and that the acquisition of SANYO Semiconductor is in line with the company’s changing focus.

“The combination with SANYO Semiconductor represents an important step in the continued transformation of ON Semiconductor into a premier global supplier of high-performance silicon solutions for energy efficient electronics,” Jackson stated in the press release. “This acquisition enables us to expand wholeheartedly into the Japanese market and to capture growth on a global basis. We believe this acquisition will create immediate value for customers, partners and investors, and we are excited to welcome the employees of SANYO Semiconductor to the ON Semiconductor family.”

Teruo Tabata, who will continue as president of SANYO Semiconductor, noted how each company complements the other in regards history and future business endeavors.

“Similar to ON Semiconductor, we have a rich history that dates back more than 50 years. SANYO Semiconductor’s internally created mixed signal process technologies and ON Semiconductor’s strong history of operational excellence with cost competitive manufacturing will enhance our ability to deliver next generation products and technologies to customers in Japan and abroad. The combination with ON Semiconductor is a great opportunity for customers, partners and employees of SANYO Semiconductor,” Tabata stated.

ON Semiconductor executive vice president and CFO Donald Colvin said that aside from mutual benefits to both companies, the acquisition enhances the On Semiconductor’s scale and improves long-term earnings and cash flow generation capabilities.

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