PHOENIX (AP) — ON Semiconductor Corp. said Thursday it agreed to buy competitor AMIS Holdings Inc. in a stock deal worth about $915 million.
The move expands ON's business in analog and power products used in the automotive and industrial customers, and opens markets in the medical, military and aerospace sectors, the company said. ON also expects ''significant cost savings'' from the acquisition.
AMIS shareholders will receive 1.15 share of ON stock, worth $10.14 based on Wednesday's closing price of $8.82. The per-share price represents a premium of 40 percent over the AMIS closing price of $7.35 on Wednesday.
With 90 million shares outstanding at the end of September, ON values AMIS at $912.6 million. The company plans to issue 104 million shares to pay for the deal, which will leave ON shareholders with 74 percent of the combined company, AMIS stockholders with 26 percent.
ON President and Chief Executive Keith Jackson will have those posts at the new company, which will be based in Phoenix. AMIS is currently located in Pocatello, Idaho.
ON also said it boosted its share buyback program to 50 million from 30 million shares. The repurchase will help offset some of the ownership dilution caused by issuing new shares.