ON Semiconductor to Buy Fairchild for $2.4 Billion in Cash
- Latest deal in industry that's seen over $90 billion in M&A
- ON expects $150 million in annual cost savings from deal
ON Semiconductor Corp. agreed to buy Fairchild Semiconductor International Inc. for $2.4 billion, the latest in a spate of more than $90 billion of deals in the global chip industry in the past year as companies combine in the face of rising production costs.
ON will pay $20 a share in cash for Fairchild, a 12 percent premium to the stock’s close in New York on Tuesday. The price is 41 percent above Fairchild’s closing level Oct. 13, the day before reports that the company was seeking a buyer. Fairchild, based in San Jose, California, makes semiconductors that regulate power in electronics, chips for cars and electronic signal converters. The company has annual revenue that’s about 1/10 of Texas Instruments Inc., the biggest maker of such products.