ON Semiconductor To Buy Quantenna Communications

(RTTNews) - ON Semiconductor Corp. (ON) Wednesday said it has agreed to buy Quantenna Communications Inc. (QTNA) for about $1 billion.

On Semiconductor will pay $24.50 per share in an all cash transaction, which represents an equity value of around $1.07 billion and enterprise value of about $936 million, after accounting for Quantenna's net cash of approximately $136 million at the end of fourth quarter of 2018.

On Semiconductor says the acquisition significantly enhances its connectivity portfolio with the addition of Quantenna's industry leading Wi-Fi technology and software capabilities.

"We are very pleased to welcome Quantenna to ON Semiconductor's team. The acquisition of Quantenna is another step towards strengthening our presence in industrial and automotive markets. The combination of ON's expertise in highly efficient power management and broad sales and distribution reach, and Quantenna's industry leading Wi-Fi technologies and software expertise creates a formidable platform for addressing fast growing markets for low-power connectivity in industrial and automotive applications," said Keith Jackson, president and chief executive officer of ON Semiconductor.

The acquisition is expected to be immediately accretive to ON Semiconductor's adjusted earnings and free cash flow.

ON Semiconductor plans to finance the deal using cash on hand and available capacity under its existing revolving credit facility. The deal is expected to close in the second half of 2019.