On Semi to Acquire Aptina for $400M

Image Sensors World        Go to the original article...

Business Wire: ON Semiconductor signes a definitive agreement to acquire Aptina Imaging. The high-performance CMOS image sensors for automotive and industrial markets are said to be the key areas of strategic focus for ON Semi. According to TSR, the worldwide demand for image sensors for automotive and industrial applications is expected to grow at annual compound rate of 16% between 2013 and 2016.

ON Semi will pay approximately $400M in cash to acquire Aptina Imaging, subject to customary adjustments at closing. The acquisition will be funded by available cash on ON Semi’s balance sheet and its existing revolver credit facility.

"The pending acquisition of Aptina enables us to accelerate our growth in the attractive automotive and industrial end-markets by leveraging Aptina’s highly differentiated imaging technologies in conjunction with our wide sales reach and strong operational capabilities," said Keith Jackson, president and CEO of ON Semiconductor. "The addition of Aptina vastly expands our scale and capabilities in image sensors and establishes us as a leader in image sensors for industrial and automotive related applications. I am excited about the possibilities that this transaction presents for both companies."

Based on unaudited results, Aptina’s revenue for last twelve months ending on May 29, 2014, was approximately $532 million with gross and operating margins of approximately 29% and 3%, respectively. ON Semiconductor currently intends to report operational results for Aptina and other image and optical sensor businesses in a separate reporting segment. The transaction has been approved by ON Semi’s and Aptina’s boards of directors and is expected to close during Q3 2014.

Update: Seeking Alpha publishes analyst's comments on the deal.

Update #2: EETimes publishes an article on ON acquisitions history and analyst responses to Aptina purchase. The article quotes Yole table of market shares in 2012, where the top 3 vendors control 58% of the $6.9B market:

Market shares in 2012,
according to Yole Developpement

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