ON Semi to buy California Micro Devices

Phoenix, Ariz. — ON Semiconductor has announced it will purchase California Micro Devices (Milpitas, Calif.) through a cash tender offer of $4.70 per share. The proposed transaction and related merger agreement have been approved by each company’s board of directors. The companies expect the transaction to close in the first quarter of 2010.

The transaction value of CMD represents an enterprise value of approximately $63 million and an equity value of approximately $108 million, based on common stock outstanding and issued.

“The acquisition of California Micro Devices will significantly strengthen our offering of application specific integrated passive (ASIP) devices to protect products in the wireless, computing and consumer electronics end-markets,” said Keith Jackson, ON Semiconductor president and CEO, in a statement.

“In addition, CMD’s expertise in protection solutions for the high brightness LED (HBLED) market, as well as their strengths in LC-based EMI (electromagnetic interference) filtering and low capacitance ESD (electrostatic discharge) protection, complement our existing portfolio of protection and lighting solutions,” stated Jackson.

“To compete successfully in today’s global marketplace, size and scale are very important so we are pleased to become part of a leading global company in the semiconductor sector. Combining our leading-edge protection technology with ON Semiconductor’s world-class operational capabilities, supply chain and global customer and channel footprint will enable CMD’s products to better penetrate the mobile, consumer, laptop and lighting end-markets,” said Robert Dickinson, president and CEO of CMD, in a statement.