ON Semiconductor Inks An All Cash Deal To Acquire Quantenna
Zacks Investment Research | Mar 28, 2019 07:49AM ET
ON Semiconductor Corporation (NASDAQ:ON) inked a deal to acquire the provider of high performance Wi-Fi solutions, Quantenna Communications, Inc. (NASDAQ:QTNA) for a cash consideration of $24.50 per share. The transaction is expected to strengthen the acquirer’s connectivity portfolio.
The purchase consideration represents $1.07 billion in fully diluted equity value and estimated enterprise value of $936 million, after taking into account Quantenna’s net cash of roughly $136 million at the end of fourth-quarter 2018.
The acquisition, awaiting certain customary closing conditions, is likely to close in the second half of 2019. Notably, with cash in hand and existing credit agreement, ON Semiconductoris expected to fund the deal.
The company expects the acquisition to be accretive tonon-GAAPearnings, free cash flow,book value per share and amortization of acquired intangibles.
From the standpoint of Keith Jackson, president and CEO of ON Semiconductor, the buyout is expected to add substantial value to the company’s operations and build a platform for low-power connectivity in industrial and automotive applications. With Quantenna’s Wi-Fi technologies and software expertise, ON Semiconductor will further strengthen its foothold in industrial and automotive markets.
From Quantenna’s point of view, “As part of ON Semiconductor, Quantenna will benefit from a world-class organization in our commitment to providing the best end user experience for our customers.”
On Semiconductor has gained 24.5% on a year-to-date basis, significantly outperforming the Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.