ON Semiconductor Completes Acquisition of Cherry Semiconductor
ON Semiconductor (Phoenix, AZ) has completed the acquisition of Cherry Semiconductor Corp.'s semiconductor subsidiary for $250.0 million. ON Semiconductor expects to continue to operate, for the foreseeable future, both the design center and the wafer fab at Cherry Semiconductor's East Greenwich, RI, facility.
Cherry Semiconductor portfolio consists of analog ICs for the power management and automotive markets. The addition of Cherry Semiconductor's sales of about $130.0 million, with ON Semiconductor's reported pro-forma net product revenues of $1.62 billion, combine to equal about $1.75 billion in sales in 1999. The acquisition was financed by ON Semiconductor with cash on hand, proceeds from an existing revolving credit facility, and an additional tranche under the company's senior secured bank facilities.
President and CEO Steve Hanson and COO Jim Thorburn of ON Semiconductor will run the combined operation. There are no plans to centralize or move any current Cherry Semiconductor functions to Phoenix.
“We welcome the employees of Cherry Semiconductor to the ON Semiconductor team," stated Hanson. “Together we can provide an even higher level of support to wireless, automotive and computer customers with our combined engineering expertise and power-management product portfolio."